Biokey International Inc (BKYI)

[SeanBoy]

But let's not forget, of the $20 million that we supposedly got in that deal, $12 million of it was used to buy what is most likely a bunch of worthless patents.

Okay, so let's run through this.

CGG has a bunch of worthless patents.

To set up the sting, they buy $8m worth of convertible notes from BKYI, paying 6% and redeemable at twice the current pps at the time they buy the notes.

Then, they buy $12m worth of convertible notes from BKYI, paying 2.25% and redeemable at twice the current pps at the time they buy the notes.

BKYI uses that money to buy the worthless patents, the assumption being they couldn't have sold them for anything on the open market because they are worthless.

They then demand a vote for a R/S be brought to the table knowing that they have enough to control the outcome. The ability to R/S is approved and they use it to fool everyone into thinking they want that to move to the NASDAQ.

Is that pretty much how everyone sees it?

I suppose that could be the case, but if you thought it is was like that, why wouldn't you buy all you could at this price. Seriously, if they are that devious, they'll find away to get this to 30 cents plus.

And of course, if it is not a scam, you have a $1B company investing heavily in a small firm.

How can you lose?