Eagle Worldwide Inc.(fka ELWD)

[jurisper]

Can anybody explain these transactions from the notes to the last financials:

On September 10, 2006, PayPro Latin America, S.A., a partially owned subsidiary of the Company ... (blah blah blah).

On September 30, 2006, the Company issued 2,000,000,000 shares of restricted stock to Fundacion PayPro.

On November 6, 2006, Fundacion PayPro announced the sale of 2 billion restricted shares of PayPro, Inc in PDRs at $0.04. PayPro Latin America, S.A. an operating company of Fundacion PayPro acquired the 2 billion shares for $80,000,000. These funds, are earmarked for future acquisitions.

So ... they give 2 bn shares to the foundation, and then PayPro LatAm buys those shares at 4c for $80M. But LatAm is a sub of Panamersa, so basically Panamersa was buying its own shares. How does that end up leaving $80M restricted cash on Panamersa's balance sheet - given that the shares were bought from the foundation? And where did the cash come from? And was there really cash paid? And why wasn't an expenseof some kind recorded on Panamersa's income statement related to this, given that it was a sub doing the buying? It doesn't make a whole lot of sense to me.