SPOOZ Inc (SPZI)

[ITGuy]

Skunk, my answers are below:

1. For compliance reasons, Paul had to move SWARM out of Spooz and create a new company to do the public trading - 141 Capital. Now by doing this deal, Spooz owns 120 million shares of 141 Capital. Forget about the 7% right now - we're just going to talk about the 120 million shares. Now, 120 mil of what number? - that is the big question but let us assume the real number is around 40% putting the total of O/S for 141 Capital around 300 mil with only 180 mil in the float as Spooz owns 120 mil. If SWARM does pretty well - and I define pretty well as the stock price goes above $5 (with such a low float and high returns), Spooz's 'value' goes up by $600 million (5 x 120 million shares) - not taking into account any P/E ratio. That should translate to AT LEAST .50 on our share price. But I think you can see that as 141 Capital does well - Spooz will profit by this. This was the only way Paul could give us some benefits of SWARM. Now, would I have liked more than 7% of the profits transfered to us - sure - who wouldn't. But I believe that had to be a lower number or else the public money being dumped into this would have to ask themselves "Why is 7% of my profits going to this Spooz company?". Would you want a high percentage your profits from investment money going to another company? Paul kept that value low and gave us the ~40% shares in 141 instead.

2. 141 Futures is registared to Paul. 141 Capital is not:
http://www.networksolutions.com/whois/results.jsp?domain=141capital.com

I thought I read somewhere that 141, Capital is owned by Errol Stone. Paul might have some ownership in it but I don't know. I think Errol and Jamie are the big owners there.

Hope this helps and you followed my logic. This is just how I see this deal and at first - I agree - it didn't look good. After looking more and more at it, it is becoming much clearer the path that Paul took and this could have an amazing effect on our pps. Just think if 141,Capital pps goes to $25! If they are crating a hedge fund and get $1 billion+ into it by the end of next year, I think even the $25 pps is going to be low - and we will own 120 million shares of it!

AIMO and please correct any logical errors I have here.

GLTA