Validian Corp (fka VLDI)

[Surwin]

I know I said I would not post until some real news came out on VLDI, but I could not resist with all this talk about Bruce investing $35M of his own money into VLDI. First of all VLDI as of the last report had an operating deficit of about $56M if you go back into the financials you will find that over its course of history about $36M went into sales/marketing/ admin and about $20M went into R&D. Bruce has only about 5.7% of the common stock outstanding (less than that number on a fully diluted basis) and Alla Pasternack has about 7.9% (down from her fathers 10% years ago). If Bruce invested any of his own money it would have been via common stock, preferred stock, notes or bonds, Bruce was awarded stock years ago and had only about 1-3% for a number of years and then a few years back actually purchased some shares bringing the total to approximately 6%. There are 688M shares of common outstanding plus the preferred, notes, and bonds all convertible into common stock. So using simple math if Bruce had invested out of pocket $35M of either his own funds or those from his investment vehicle he would own approximately 62.5% of the company. on a fully diluted basis. There was a period of time where Bruce did debt financing but he was repaid the the full amount of approximately $.5M. Believe me that Bruce has taken out way more in funds out of this company than he ever invested!

The truth be told is if anything he pulled out of the company over $35M in sales and marketing without ever marking a single real sale over the years which for the most part went into his pockets or his investment vehicle. The logic is simple if Bruce had invested his own money he would own much more of the company on a fully diluted basis than 6% and his investments would have been reported with the proper SEC filings such as a 13D or equivalent. Now I will crawl back into my hole.