NOT revoked CEO newsletter
MOLLER INTERNATIONAL
Moller International (MI) was delisted as anticipated in my last Newsletter. As President of MI, I apologize for being unable to raise the necessary capital to maintain MI as a public company. Raising capital for the development of a rotary engine proved to be easier than for a flying car (personal air vehicle or PAV). Consequently, the value of MI shares has continued to decline, while the value of Freedom Motors (FM) shares has remained stable. The number of MI shareholders who stated that they wanted to exchange their shares for FM shares was much larger than expected. This is very important for those who do exchange shares because as FM becomes a major shareholder in MI, exchangers will indirectly remain MI stockholders.
Questions that have been asked by MI shareholders include:
Question 1: Are my MI shares now worthless?
Answer: No, otherwise FM would not be discussing an exchange of shares. However, it is reasonable to assume that MI alone may continue to have difficulty raising enough capital to achieve FAA certification of its Skycar® and Neuera. To put into production and FAA certify both the aircraft and manufacturing facility of a conventional two-passenger airplane like the ICON can cost over $100 million and take many years to achieve. Needless to say, a very unconventional aircraft like the Skycar® could cost more and take longer.
Question 2: What was the last share price at which FM shares were sold and what is its market cap?
Answer: FM sold 70,667 shares at $1.50 per share resulting in a market cap of $62,250,000. In a recently signed agreement an investor will acquire over 4 million shares at a higher share price. This will double the FM market cap.
Question 3: What was the FAA’s objection to certifying the Skycar®?
Answer: The FAA did not object. The problem for MI was raising the capital required to produce and certify the Skycar® along with the time it might take to become FAA certified. This, and the over $22 million in debt, deterred potential investors.
Question 4: How many shares have been issued by MI?
Answer: 150 million shares were authorized and have been issued. MI is seeking authorization to sell another 150 million shares in order to provide 55 million shares to shareholders who have exercised options. The remaining 95 million shares will be available to raise capital should that become possible.
Question 5: Should I convert my MI shares to FM shares?
Answer: This must remain your personal decision. If you want to convert, but have reservations, you should keep some of your shares. The officers of MI and FM support this exchange; however, it must be approved by the SEC, which will take some time. During this period, you will be made aware of any developments before choosing to participate in this one hundred for one share exchange. Providing Freedom Motors with the number of shares you wish to convert will continue to be treated as an expression of interest that you can change at any time until a final agreement is signed between you and FM.
