AS-IP Tech Inc (IPTK)

[nsomniyak]

Yes - I participated in the IPTK presentation yester (Ron - I am Joe from the break out session).

I found it interesting. First, let me give a brief overview of the format. For starters, it should be understood that this was not a one-way "webinar", but rather a ZOOM call in which all participants were visible to the others (I had my video off) and where all participants could ask questions (in the breakout sessions). After some intros and some plugs for the sponsoring groups (a Washington based group that sponsors these kind of forums to connect emerging companies with private angel investors and angel investment VC firms), the spokesman for each of the 9 companies was introduced in turn and had 4 minutes to give their pitch. This consisted of a one-way presentation (no questions yet) where the presenter used a short Powerpoint deck to outline what the company was all about, the opportunity, their numbers and projections, and the investment they were looking for at this stage. In some ways this was reminiscent of entrepreneurs giving their initial pitch on "Shark Tank", although the companies presenting were more advanced and were asking for more money (there were no negotiations or offers during the session).
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After each 3 presentations, they popped up a survey where you could ask to be contacted with more information about any/all of those three companies if you wanted it. I am not experienced as an "angel investor", but to my ears almost all of the presenting companies sounded intriguing. I have certainly bought into many otc stocks with less potential. I requested more info on 7 of the 9 companies, with the other two looking like they were possible money makers but were addressing markets that just were not a fit for me. Unless I missed something INTK was the only company presenting that was already public. I don't know if, other things equal, this led to more or less interest from attendees in IPTK than in other companies. It certainly meant that IPTK's funding request was structured differently than most of the others because it necessarily had to be related to the current value or IPTK shares in a public market.

After all 9 presentations were complete, each company hosted its own breakout room, and each of the investors on the call could enter that room (essentially, a ZOOM chat) and interact with the company rep(s), asking questions. The companies could provide additional information or color beyond what was included in the original 4 minute pitch.

I joined the IPTK breakout room. There were 10-12 people in this at any given time. I don't know how many total attendees there were, so I don't know if IPTK had more or less than other breakout rooms (I got one of the "free" slots given to the first 100 who signed up, so the total may have been more than 100, as they seemed tob prepared for this). The 10-12 people include Ron and Barry Chapman of IPTK, and Bill Middleton (did not catch his company). Bill was obviously very familiar with IPTK and "soft tossed" some questions to Ron to allow him to cover points of interest and other advantages of the technology that did not make it into the 4 minute overview. I don't know how familiar the others in the room were with IPTK or whether they were already known to Ron and IPTK mgt., so I don't know how many "new ears" the presentation reached. The tone of some of the questions suggested that some of the attendees were less familiar with the technology and company than I was (which is a good thing - the whole point of this was to reach and engage with such investors). In response to these questions Ron was able to differentiate what IPTK offers from "wi fi" and differentiate the costs and value propositions.

Here's the financing that IPTK was asking for (Ron - please confirm that I have this right). They are looking for a $5MM convertible note at 12 cents per share. The note would pay 7.5%, and there would be a "1 for 5" warrant attached. In other words, for each 5 shares purchased (60 cents) you would get one warrant (theoretically worth 12 cents) . We did not get into the fine print items like term of the note, warrant expiry date, or any call provisions related to the convertible preferred or warrants. Presumably the underlying stok would be restricted but that was another detail we did not explore in this forum. They are looking for investors to put in a minimum of $100K each. We also did not discuss whether some portion of this offering had already been spoken for. Maybe Ron can add some color regarding the intended use of the prospective funds.

As I said, I don't have experience with this type of offering, but it seems in line with what I would expect from a company like IPTK at this stage. Any big investor who really likes IPTK would go for this offering as opposed to buying IPTK in the open market. .12/share is above market, but they would get the 7.5% interest and the warrant kicker. Additionally, $100K at .12 is about 833K shares. With average daily volume around 6300 shares, there is absolutely no way anyone could buy 833K shares without substantially moving the market, even if there were not 50 other $100K buys!) I would assume that the market price of IPTK will not move substantially until this offering has been closed. Ron - feel free to correct me and add detail.

Hope this helps.

One final thought. Ron - I checked in the cushions of my couch and came up a little short of a hundred grand. If I had it, I would certainly invest.