Wave Systems Corp. (fka WAVXQ)

[RootOfTrust]

Hey MIG

Wave's PR stated that Wave's Embassy trust suite of software services works with IBM embedded security system, and that IBM recognizes Wave as an independent software vendor. The confusion arose when subsequent media coverage stated/implied that Wave had a bundling deal with IBM. Lark Allen subequently clarified to the media that this was not the case.

This media crisis was exacerbated when the DJ Newswire reported that Wave was running out of money and that the SEC approval of the proxy was delayed which was jeopardizing Wave's chances to authorize more shares to raise funds to keep the doors open. The journalist had merely read through a recent SEC filing in getting this "news". The crisis was largely ameliorated two days later when Wave announced additional $3.6M funding from employee exercising options and PJS repaying the $1M loan.

Of course shareholders who follow the company closely knew all along that no intent for an additional equity offering is known and therefore that the proposal to authorize more shares was not nescessarily needed to raise additional capital. Actually as best I know, at least 9M of the existing 75M authorized will remain after all current shares are issued.