Ok FCCN Board here is the response via email from Andrew regarding the questions I had for him. Note my original questions are at the bottom of this email.
GLTA
----- Original Message -----
From: FCCN Investors
To: xxxxxx
Sent: Tuesday, February 27, 2007 2:43 PM
Subject: Re: FCCN
1. GGI has drawn down shares under the disclosed terms of the escrow. The number of shares issued from escrow can be determined by subtracting the number most recently reported in escrow on February 15th (approximately 750 million) from the original number reported in escrow - approximately 840 million. Shares can be drawn down under the escrow terms, and the Company has not issued an opinion or estimate on how may shares will ultimately be drawn down by GGI or sold into the market by GGI.
2. The August filing was made well before Aero was introduced to the Company and before any acquisition with Aero was contemplated. What has been stated subsequently is that the current management team of FCCN is expected to only be transitional to close the acquisition of Aero. Any potential recapitalization will be considered only be future management, not Javelin, and we cannot currently say what that management team may consider as options.
3. Javelin will not determine what market the post-acquisition company will target. It will be the management team brought in to run Aero as a public company that will determine the proper market based on Aero's financial statements. They would also determine the proper timeframe.
4. There has not been any specific discussion of shares that GGI is purchasing and what they will do with them. Perhaps this will be a question address by FCCN CEO Steve Peacock in his upcoming planned interview.
5. The companies have estimated a close of the acquisition in the second calendar quarter of 2007.
6. See #1
----- Original Message -----
From: xxxxxx
To: investors@franchisecapitalcorp.net
Sent: Tuesday, February 27, 2007 9:01 AM
Subject: FCCN
RE: FCCN
I am a current sharehholder of FCCN and have some questions from the prior filings that I would like some clarity on. Your response would be greatly appreciated.
1. After reading the last filings I am under the impression that GGI is currently diluting the market. Is this true and if so how many shares have entered the float and how many more of the escrowed shares do you forsee hitting the float?
2. As per your filing in August you state "Javelin will commit that it will not attempt a reverse split of FCCN's stock greater than a one for six (1:6) basis. Further, no reverse split or recapitalization of FCCN will take place until after the divestiture of FCCN's assets and any associated dividend of such assets to FCCN shareholders".
Do you forsee a reverse split in the forseable future and if so do you still commit to this statement?
3. As per your filing in August you also state "Javelin will commit to a minimum capitalization target for any merger that would be in line with Nasdaq small-cap requirements."
Do you still commit to this and in what timeframe do you expect this to happen once merger is complete.
4. What is going to happen to the shares that GGI is buying back in terms of the agreement you have with them?
5. When do you forsee this merger as being completed?
6. What is the current float and when do you anticipate the TA being ungagged?
Thank you
xxxxx
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