This explains why the stock fell so fast after going public folks.
The people who invested in this initial offering saw a price of $1.60 and they had bought at .30 - so naturally they threw their shares at the bid!
No wonder the stock fell so fast at first...
Then you had highgate who had another 2.5 million shares to sell that they had converted and they had to sell fast or risk taking a loss on their conversions...
NOW I UNDERSTAND WHAT HAPPENED!
But the stock should be valued at .14 or so now, imo... Technical factors caused it to be oversold! Nothing to do with the company at all!
During the second quarter of 2005, the Company offered the secured note holders the right to convert the $1,500,000 of notes into common stock at a per share conversion price of $0.30506. For the term of the offer the Company reduced the exercise price of the warrants to purchase an aggregate of 3,278,055 common shares from $0.45759 to $0.30506. A total of $1,470,000 of secured notes and related accrued interest of $66,150 were converted into 4,818,742 shares and 1,376,783 warrants were exercised for gross proceeds of $420,000. The exercise price of the remaining 1,901,272 warrants reverted to $0.45759 per share at the conclusion of the offering. After the offering, one note remained outstanding; quarterly payments of $2,881, including interest at 9%, are due through September 2008. At December 31, 2006, the note balance was $18,465.
