World Surveillance Group Inc (fka WSGI)

[followinsnsr]

Correction: Post should: On May 26, 2006 $100,000 equals 54054 shares @$1.85, present worth $12.973.
On May 2, 2007 (if today was the date of the acquisition which is not, and is just an example) $87027.00 worth of stock would need to be issued 362613 shares @.24.
So if they sold the shares at the time they received the increments, they stand to receive much more then $100,000.
Should the price go down to .12 would be= 725,225 shares.
Be interesting to see what happens between say May 20th and June 6th.
If I was the seller. I would short this stock before May 26th. The more it is driven down the more shares will be received. Not a smart way for a company to transact an acquisition and can hurt shareholders in ways like shorting and dilution. Meanwhile will Globetel try to accomplish something to get the price up so less shares will be given out? Or will it be they simply don't care? Although this is a small amount and may not mean much, transactions like this are something that needs to be scrutinized. IMO. Why weren't they paid off in full at the time of the transaction?


Lexington

On May 26, 2006, the Company’s wholly-owned subsidiary, Centerline Communications, LLC entered into an agreement to acquire specified assets and contracts of Lexington Global Net, LLC (“Lexington”), a telecommunications systems operator located in Atlanta, Georgia, with operations in the United States and Latin America, primarily in the country of Colombia. The acquisition transaction, which closed during the three months ended June 30, 2006, was paid with $25,000 cash and $100,000 of the Company's common stock to be paid based on an agreed upon value of $1.85 per share for a total of approximately 54,054 shares, to be issued in increments during a period from 60 to 180 days after the execution of the agreement. However, should the market price of the shares delivered decrease to less than $1.85 per share, one year from the date of execution of the agreement, the Company shall make up the difference between the market price and $1.85 by the issuance of additional shares or by payment of said difference in cash or a combination of cash and stock at the purchaser’s discretion.