Cal-Bay International Inc (CBYI)

[STRONGUS]

My talk with CBAY IR today : Please read in full..

My call was to wish Tim happy birthday and we went on to discuss the share structure. I questioned him about the increase in O/S between the last 2 PRs. He agreed
that has gone up since. He attributed the increase to some of the Pref B holders converting to common. I asked him if the pref b converts to common the number pref b should come down by the same number but we haven't seen any evidence of that. He rationale was that the pref b shares were issued long time ago that are getting converted now and at the same they are issuing pref b shares for the new assets that they are buying. . I told him while we shareholders appreciate how they have grown the assets to over $100 million, more shares coming to the o/s and subsequently to the market is affecting the share price. I asked whether they could stop issuing any more shares. He said they are an equity based company at this point and once
the revenues start kicking in they won't have to issue millions of shares like they are doing now. He also told me that Pref A conversion rate is 50:1 and Mr.Pawson is keeping
them to retain the majority stake. They are working on a few new deals. I asked whether they can assure they wouldn't any do any reverse split considering the increase in the o/s and a falling share price, he said he personally would try to prevent that. He said a R/s would help in fixing the current share structure?? but certainly not on the table at this moment.
My feeling after my talk is this. The o/s is keep increasing coz they are issuing shares for buying assets. At the same time the assets are also growing. It is going to be
like this for some more time. I tried my best to present my conversation to you all. Hope this answers the questions some of you had. I think once the revenue generation starts in full swing, the dilution for buying assets will stop. That is the point I am looking forward to. Until then it is a wild west ride for us, longs.

Disclaimer : I may be entirely inaccurate in narrating my conversation
with the CBAY IR guy. I am not responsible for your trading actions.
Do not buy or sell based on my posts which can be totally wrong.