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Re: ChangeDirector post# 84095

Saturday, 10/06/2007 11:22:14 AM

Saturday, October 06, 2007 11:22:14 AM

Post# of 162847
THE GOOD NEWS re: Aero/FCCN share swap...

As I posted yesterday, I believe it's very possible that there may be something close to a 50/50 exchange of shares/value between FCCN and AERO.

ChangeDirector, your post I am responding to is close to what I was posting yesterday. This is the relevant statement from the merger PR:

"Franchise Capital announced that it expected to exchange up to 95% of its total issued and outstanding capital stock in exchange for all of Aero Exhaust's issued and outstanding shares."

I wrote a post yesterday entitled

"Does PR imply FCCN getting 50% of AERO?"

Look it up under my posting history. I guessed that the wording of the PR might imply that FCCN shareholders were getting more than an even split with AERO shreholders.

When you consider the revenue allegations found in that law suit, and the loan FCCN gave to AERO for 1.85 million dollars, than I believe FCCN shareholders ought to be getting a little more than 50%.

ChangeDirector, you said:

"In other words they wouldn't be issuing new shares.

At least the shares that the old Aero is getting will be restricted, so it seems this could somehow lead to a dramatic reduction in the float.

Let me be absolutely clear here that this means that current Aero holders are getting restricted stock, not at all that the FCCN shares that convert to the new AERO will be restricted. Those shares will be free trading, which is a good thing."

I think I agree with this. The PR language is confusing, but I think you are right. But let me clarify even further: I believe FCCN will own more than 50% of AERO.

If FCCN management swapped 95% of that portion of FCCN stock which was not already owned by the general public for ALL of the AERO stock, that gives FCCN something substantially higher than 50% of the new company.

Then add in the fact that we get even more because of the 1.85 million dollar loan.

I tried to get the word out on this yesterday and some people were paying attention because my post was republished by the moderators of "Hot Stock Articles". It's now been moved off of their main page but you can see the Google Blog search link here

http://blogsearch.google.com/blogsearch?hl=en&client=firefox-a&rls=org.mozilla:en-US:officia....


I wish more people would have discussed this when it was posted yesterday before the market opened because I believe that MMs and the pro bashers they employ were paying attention and that the possibility of my post being correct scared the living hell out of those who were short and looking for cheap shares.

Imagine where PPS would be today if the following things had happened yesterday:

1. This IHUB had been filled with logical discussions and Post headers like this "FCCN to own MORE than 50% of AERO via PR"...

2. NO bear raid caused by old lawsuit

3. Hunsaker named as CEO

4. MMs let the free market work

I think we can all agree that the PPS would be alot higher than Thursday's .026 close.

I firmly believe that the MMS were scared by the possibility of a short squeeze happening and that like a cornered rat, they attacked with a vengeance. Knowing that the SEC REG SHO rules will change in a few days, they were left with very little time to play this illegal game.

The good news for them is that their scam worked

The bad news for them is that they were forced to be BLATANT about how they did it.

And they misused legal documents and violated the terms of the PACER system and I believe there will be criminal charges brought when all the smoke clears. More on that topic in a follow up post.

The MMs were in possession of the old law suit information and had been holding it back waiting to let the price rise so that when they caused the BEAR RAID, it would have been that much more dramatic and devastating than it was yesterday.

But since there was a possibility that this IHUB board and the rest of the market might have had the time to analyze the possibility that FCCN was to own more than 50% of AERO, they decided to pull the trigger on the bear raid before they truly wanted to. And while it was pretty freakin scary, it would have been alot worse if the fall from grace was from a PPS of say .08 as SWVC recently had to cope with.

I have attempted to write a sincere honest analysis of the situation which some may read a as a pump. I can assure you, this is no pump.

I flipped a bit to save my azz on Friday. I smelled a rat and sold about 25% of my position at an average of .0265 early Friday. I then flipped with some buys at .0155 and sold everything at .0185

I currently do not own FCCN. I may buy back in depending on Monday's open. The play is currently a loss for me, but not a big one.

I hope people will read, analyze discuss and repost the information in this post as well as the post I am writing to follow it which is going to be titled

THE BAD NEWS re: AERO financial admissions

Some will be calling me a basher and some a pumper. I am neither. At this point, since we have the weekend to really pool our resources and get to the bottom of this situation, I hope we can come together and find some common ground and some truth which will help all of us make a better informed decision come Monday morning.

And for the one who started the fire on Friday, DownWithPumpers, please be aware that your desperate activity to benefit you and your MM overlords was illegal. It was a criminal conspiracy. More on this later.





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