CJ: I just spoke with Liz. I have the story behind why the 130 million shares are canceled.
Conversation with Liz - Transition of CLSI to a new entity is happening. She is checking the SEC website every day to see if the filing is there because she’s been told it sometimes takes them a bit to get to posting it.
What I saw filed with the SEC in 2009 was because they did not want to be a reporting company. The new company will create the financials using their financials.
Getting registration done with the OTC markets and filing an 8-k with the SEC naming the new entity and what the business is. The company name will change but the ticker symbol will not. She is checking the SEC site every morning because she’s anxious to see it done as well.
Tony Nick was a broker that contacted them to see if they were interested in moving their shell. There are new entities that wanted to go public. He's the broker in the middle. HE DOES NOT own the shell. HE HAS NOTHING to do with the new business. It's like selling your house and having a real estate agent. He is only the person that brought them together.
He has a full name that is different from the name he's using. Doesn't have any bearing on any of this. He contacted CLSI with questions from the attorney for the entity and they are getting filings. She's looking at the SEC site every day to see who THE NEW ENTITY is.
OS was reduced by 130 million shares that she canceled OUT OF GOOD WILL AND THE GOODNESS OF HER HEART because she had the controlling interest. They canceled them because they know it will help their shareholders value. They're not taking money for it. They don't want to be public. This is an opportunity for the shareholders to finally have value.
Clancy Systems wasn't growing and isn't doing any good for the shareholders because they're not reporting. A good way the old shareholders have to get value with their shares is the new entity. She heard taking over a shell is a lot easier than doing an IPO. Cost is way less than doing an IPO so she’s all for it.
She is 5 months into it. She thought it would be quicker. She is being told that there is a light at the end of the tunnel. They're impatient and want it to be done so they can get it completed.
From what Tony said last week, he was going to do a conference call with the attorney for the entity because they had a question, but all questions were answered and the attorney had ZERO concerns.
Liz wants it to be good for the shareholders for a company that will be fully reporting. She’s a little anxious for it to all be done for them.
In 2009, their attorney came to Clancy Systems and said you have less than 500 shareholders of record and you don't need to be fully reporting. They put out an offer to buy back all shares and go private. Very few people agreed to do that. Some did and they bought them back.
It has not had much value, but it has value. They did redeem some shares over the years and bought some back. When this came up, they saw as an opportunity to do better for their shareholders. She agreed to cancel her shares for this to help the shareholders.
Tony told them last week that they were doing filings & waiting on SEC.
What Liz has been looking for is 2 things on the SEC:
1. An 8-K. She looks at SEC website every morning for that document.
2. Whatever business it is, they are not going to use Clancy Systems International. It will be a new name. The ticker will be the same.
