PowerLinx Inc (PWNX)

[gotinearly]

Now for some actual information...

I just spoke to Mr. Robert Plesnarski with the SEC. He called me in regard to a question I
emailed to the SEC. I wanted to know if a publically traded company could issue
restricted shares (previously authorized) directly to itself and hold them in treasury until
needed. (ie is there any violation of SEC laws and regulations?)

Answer: NO!, as far as the SEC is concerned, a company may issue shares directly to
itself and for lack of a better place to hold them can use its treasury. He went on further
to say that it would be governed by the incorporating state and any lending
commitments the company may have made. Also, he commented that although he saw
no problem with the issuance, he was curious as to why they would do so and he has
not encountered such a transaction (further explained that this transaction was not
reportable in detail to the SEC and therefore would most likely not be encountered by
him).

From there you all are on your own. It seems to me that the shares being issued to
treasury in anticipation of debt financing would be a reason for the action.

JMHO