"I have done that math on this.. and IMO your assumptions are incorrect.
Todd, thanks for joining the discussion.
The math is not wrong. You need to do the math using the formula for the GGI escrow conversion. The simplest way to explain it is to assume that GGI was able to draw the entire 443,000,000 shares from escrow at .0008 per share which is 80 percent of .001
Understand that it was impossible, using the lowest bid prices for any five day period since the escrow agreement was made back in Nov 2006 for GGI to get their shares this cheap, ".0008".
However, just for the sake of argument, assume GGI drew down the entire 443,000,000 converted shares from escrow at ".0008" per share
443,000,000 x .0008 = 354,400
$354,400 would have been the amount credited to the debt owed by FCCN to GGI under the stated formula.
But GGI was only owed $220,000
The math don't add up Todd. When you consider that the ".0008" price per share used above in this example MUST have been alot higher than .0008, it becomes very clear that there was a second beneficiary of the escrow agreement.
Now go back and read the following:
From the January 30, 2007 PR:
"The escrow agreement was designed to allow Franchise Capital to set aside a sufficient number of shares to cover both the settlement of debt and to allow access to capital as the company moves forward with its acquisition of Aero Exhaust..."
And from the March 14, 2007 PR which discussed the annual shareholder's meeting, please pay close attention to the language employed as to the nature of AERO's loan:
"Among the topics addressed was the amount of capital currently drawn down by Aero as part of the $1.5 million loan made available by Franchise Capital. Mr Peacock estimated the total amount drawn down to be approximately $1.2 million thus far."
Is anybody else having trouble accessing the PRs from the FCCN website today?
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