immitt, It is my personal opinion after my dd, etc... that they wouldn't have asked for the increase in the authorized shares if it weren't for the pending Mercatus financing package, which from my dd, they seem pretty confident that things will go through there. Plus if I am recalling correctly, someone even posted here that in a conversation they had with Brad it was mentioned that they may even have some funding from the Mercatus deal prior to the annual SHM.
I do think that the movie will be an important peice in assisting to finance the Technology development from FPGA to ASIC as well.
In addition, even if by some fluke the Mercatus deal does not materialize, the revenues from the movie which may or may not be adequate to fund the ASIC development (which isn't cheap), depending on how those funds flow in and at what rate, depending on those revenues only for the ASIC development may slow that particular development process. If it would happen to slow the process and additional funding is needed, then the Company may have to resort to selling the class 144 shares again thus adding to the dilution that everyone complains about. On top of that, they only have so many shares to sell there, and when that well runs dry, what to do next?
In other words I am for the increase in authorized shares, but wouldn't hurt to see a cap or restructuring of the base salaries until NVEI becomes a true revenue producing Company.
Just a few thoughts,
Pengy
"It's kind of fun to do the impossible."
- Walt Disney (1901-1966)
AI
