Intelligent Highway Solutions, Inc. (fka IHSI)

[Burn Notice88]

$IHSI - ADDRESSING CONCERNS W/ FACTS AND MINIMAL OPINION

You raise several valid concerns. I will do my best to answer with facts from my perspective (in blue).

The first question you raise is regarding the company servicing debt.

IHSI's Authorized Share Count presently resides at 10,000,000,000 shares.

IHSI's Outstanding Share Count presently resides at 5,764,605,546 shares.

What's interesting to note, and what I feel is very relevant to point out is that there is an ADDITIONAL 14,777,479,522 share "equivalents" and 448,57 exercisable warrants and options for a total of 20,542,533,638 shares of common stock and common stock equivalents as of the end if June

https://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=12246063

20,542,533,638 shares of common stock and common stock equivalents yet the A/S resides at 10,000,000,000 shares

With 10,000,000,000 shares authorized, there are insufficient common shares in treasury to meet all of the Company’s common share equivalents obligations. 14,687,479,522 of the common share equivalents arise from outstanding convertible notes payable

Cash will need to be raised adequately enough to service "existing" obligations upon CD note holder debt to equity conversions.

But the unknown factor remains, "Is IHSI management continuing to issue NEW cd notes at the 50-60% discount to .0001/share" ?

Short answer = NO.

Long answer - No and Why...

It is not uncommon for a hedge fund to purchase old debt in the form of restricted shares. Especially from a company that has strong fundamentals, such as IHSI. The shares would be restructured in a different asset class cleaning the company's books and positioning them for growth. In turn, the hedge fund would sell the restricted shares at future date and time. In my opinion, this is exactly what is happening here.

All those notes can get wiped out in an instant with restructuring of their debt and capital structure. They ARE laden with toxic notes, BUT I've taken another VERY strong look at their financial statements. IHSI HAS cleaned up their balance sheet, significantly. They have a great business model and show significant growth. They are audited and current with the SEC. One of the key things to qualifying for better financing is filing an S-1. Recall IHS filed an S-1 in September 2015 and an amended S-1 in December 2015 but they weren't current with their filings (a requirement) and had little to zero company assets (another requirement). Coincidentally, they ARE current now AND they have almost $3 million in assets thanks to their acquisition of Cresent Construction. Now I may be a fool for five minutes for asking the question, but doesn't it seem strikingly familiar that Company X outlines all the aforementioned touch points in order to qualify for much, much better financing?

On 8/27/2017, I went into further detail what I believe is going on in IHSI.

Clues and timeline of cleaning house of toxicity.

It's no secret the company is seeking better financing to replace toxic convertible notes with more traditional long-term capital in the public markets. IHSI has stated such in several PRs and the financials. Imagine how this will increase the value of IHSI once these dirty notes are off the books. If or more like when successful, when it happens, it will happen overnight. Those old notes would disappear and armed with a more-typical conventional loan with lower rates, the company will grow the business with a steady stream income and further acquisitions.

I believe multiple clues indicate the debt restructuring could possibly be in motion. Based on the following signs from IHSI and the debt restructuring company IHSI touted in their "very first" tweet. Moving forward I will refer to the debt restructuring company as "Company X." IHSI's first tweet was clue number one, something is be brewing.

The second clue, which actually preceded clue one, but was meaningless without clue number two, IHSI got their financial house in order, spending 10's of thousands of dollars to get all quarterly and annual filings updated, with the 10K audited for 2016. This matches perfectly with the first article on Company X's website, "Take the Summer to Get Your Financial House in Order."

Clue number three, were consistent demands to the company by shareholders to stop the toxic lending and selling of notes into the bid. Numerous phone calls and email exchanges between concerned shareholders and IR with those thoughts, feelings and feedbacks openly shared on the board, including management's opinion, responsiveness and willingness to listen to and address shareholder concerns. This was confirmed in clue number four.

Clue number four, was the company's letter to shareholders on August 8th. In that letter, management acknowledged shareholder concerns, "As shareholders, your concerns about IHSI are the dilution, debt, stock price and reverse split. When the first quarter 10Q was filed, and outstanding shares were reported, there were shares in the pipeline that, as of the filing, were scheduled for distribution but had not yet been issued. We have consolidated our debt and we believe our relationships with the note holders is excellent. It has been an expensive process to have our reporting updated, acquire Cresent and seek other acquisition targets. But this is our future...and our investors' future. We are looking for better financing to replace these notes and we anticipate a cash flow that will support the growth of the Company and service our expenses."

This weekend I spent time, "following the money" by taking a closer look at Company X. Out popping multiple clues from Company X's webpage "What We Do." I could spend upwards of an hour building a checklist of the things Company X recommends all OTC companies facing toxic lending to do, along with the services Company X provides. Then spend more than 30 minutes connecting how I believe IHSI is checking off Company X's capital restructuring checklist. For now, I'll leave that up to you to investigate and draw your own conclusion.

To help those along a little bit, I can't help but believe the recent $1.7M lawsuit vs. the toxic lender is related. I can't help but believe the company's hiring of a professional IR firm is related. I can't help but believe that Tom Allinder coincidentally, who works for the debt restructuring company, who also assisted with the facilitation of the company website. I can't help but believe that Company X underscoring the use of social media to get the message out and now IHSI is tweeting away. I can't help but believe the recent picture I found on the interweb from the downtown investment banking district in NY is mere coincidence it originates from IHSI's website. Most of all, I can't believe how easy it was to tie all this together with just one tweet. It MAY all be mere coincidence, BUT I don't believe it is!

And oh, by the way, clock is ticking. Company X said 90 to 180 days to turn the bad debt around. By my timeline, they may have been working with Company X for several months now. Website built. Lawsuit vs. bad lender. IR firm in place. Social media check. The list goes on...

But don't take my word. Research and judge for yourself.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=134169563

Then we have the unusual trading activity pointed out earlier this week.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=134394120

In further evidence of Hedge Fund involvement I pointed out back on August 31, 2015. This matches perfectly with the link above on the 50,000 share block trading occurring this week.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=116625333

Your concerns of a RS are noted and addressed below.

In their latest 10Q filing, it stated "The Company plans to remediate this shortfall either through a reverse stock split or an increased in the authorized common stock of the Company.

Obviously the A/S will need to be increased to meet this shortfall.

My fears (and what got me thinking long and hard about dispensing a large part of my core holdings at break even), is the fact that once the A/S is increased to meet this shortfall, it would have to add ADDITIONAL shares to the A/S to make room for ADDITIONAL cd note issuances if they intend on continuing to raise capital by way of debt to equity conversions.

Now it's "nice" of management to state that they would like to seek more less dilutive financing and consolidate so that they no longer have to tap the capital markets to service it's debts - but, to date I personally have seen no evidence of this debt consolidation/financing even in the works.

The verbiage used in their most recent PR stated "No Reverse Split at this time"

Yet in the 10Q filing it states "The Company plans to remediate this shortfall either through a reverse stock split or an increased in the authorized common stock of the Company"

In my opinion, they are going to implement BOTH.

The "No Reverse Stock Split at this time" covers them because "at this time" literally means "at this time".

Why they couldn't commit to a more finite statement such as "We have no plans to implement a Reverse Stock Split in Fiscal 2017", is beyond me - and it is a reason why I personally tool pause and chose to recover most of my investment dollars here.

A very simple answer to a common shareholder question.

Short answer = NO.

Long answer - No and Why...

I spoke to Paul and relayed my frustration about this, as well. Management found it prudent for legal reasons to play it safe in the 10Q. There are just too many positives, not to take management's word for it. Improving fundamentals, debt conversion, increased revenue and assets, and part of a law suit that has already ruled in their favor. They all qualify the company for better financial restructure.

Here is Paul's response:
Quote:
The 10Q is a legal document. You have to consider all possibilities. The company has stated it does not want to do a reverse and has no plans for a reverse.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=134398869

Personally, I just don't see a RS happening until after a MAJOR run is conducted. Management has given us "their word" and there are just WAY too many positive things going on for that to happen.

My last thought regarding a reverse split has to do with management. I ALWAYS do my research on management before making an investment and frankly I trust management has shareholder concerns in their best interest too. Here are my thoughts based on facts:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=134476978

My 2 cents.