Flexpower Inc. (FLXP)

[PayDirt!]

TH#3
09.10.07 Share Dilution
Posted in Announcements,
Investor Relations at 12:42 am by adol77dai51

QUESTION:

Is the Company diluting the stock? Straight up, simple answer please.

RESPONSE:

Yes, the Company has issued additional stock recently. Which will no doubt raise a number of additional questions, answered below.

The key factor is that we have added value to the Company well in excess of the additional stock issued. As will become apparent, the Company is further ahead today than it was before issuing the additional shares. Each day brings us closer to realizing that value.

There will be more announcements in due course. We are still on track to end the year very strongly.

Has it driven the stock lower?
Why issue more stock?
Why has there been no previous disclosure?
Why not pay Cash instead of stock?
Why focus on another new business area?
What is the current outstanding number of shares?
Has it driven the stock lower? We don’t think so, as regulatory requirements stipulate that this stock must be held for a reasonable period of time before it can be sold by the receiving party. As we posted earlier on the Town Hall, we believe it was shares purchased in the last round of 504 stock issued that were being liquidated. We also have to consider the possibility that Jack Chang is selling off all his shares, before any litigation is begun.

Why issue more stock? The Company has acquired additional shell companies, for use in our IFGX.com website. These have become important investments for the Company. Recent negotiations around the world have had an unexpected side benefit. We have been approached by a number of private companies that desire to go public.

We had to evaluate the pros and cons of assisting these companies. The bottom line is that it will bring significant additional revenue into the Company. More importantly, it will help solidify business relationships with potential clients in our lines of business, with whom we are currently in discussion.

IFGX has been on the shelf, and inactive. We had initially acquired a few shell companies for its operations, but had put those on hold pending the final decision whether to up-list or not, as well as possible spin-offs of core divisions as they mature.

This new demand required additional shell companies be available. We also needed to completely revamp the IFGX website, which should now be up early next week.The immediate benefit to the Company is the value of these shells, ranging from $500,000 to $750,000. IFGX now has a total of 4 shells in inventory, all of which can trade on the OTCBB venue.

Why has there been no previous disclosure? As we have advised, on a number of occasions, we cannot always provide real-time information, particularly for negotiations that involve third parties. There is also the very real issue that we need to be sure that any action we announce, and we better be able to execute, particularly after our experience with Jack Chang.

Why not pay Cash instead of stock? Our liquid capital is required for ongoing operations. Many of our core businesses require cash on hand in order to deliver our financial services. As we are focused in a number of financial service areas, we need access to liquid capital.The stock issue brings us to a point where IFGX is ready to roll. This service will generate significant cash flow upon consummation of its first deal, which can then free up additional capital for all operational aspects of the Company.

Why focus on another new business area? There was some trepidation associated with the decision to pursue this avenue. However, we are of the opinion that the benefits are very worthwhile pursuing, both from an income perspective, as well as relationship building with key contacts we wish to develop.

What is the current outstanding number of shares? The total number of outstanding shares has risen to above 10 billion shares issued. This includes financing of the new shell companies, as well as software development etc. The current number of outstanding shares will be posted to the Pink Sheets by Monday.