Flexpower Inc. (FLXP)

[PayDirt!]

10.11.07Garr/Minaco-TradeX sharesPosted in Announcements, Investor Relations at 10:05 pm by EricTheRed

QUESTION:

I think that is great news that Garr will be here next year to continue to run the company.Some concerns after reading these post need answered.

I thought the preferred shares were only 2000, obviously Gar can not live off of a portion of these. So how many shares do Minaco-TradeX own and how/when did this happen?
It was stated these shares are the same as our common shares only with 30,000: 1 voting rights. Again how can he live off that.
Still concerned about losing my share count after the O/S has double since buying my shares, giving me ½ the percentage to O/S I had before.
RESPONSE:

First, we must clarify that he has not agreed to stay and run the Company. We are discussing an ongoing role in the Company. However, he has other business interests that will conflict with him staying on a full-time basis. He will comment shortly on the Town Hall himself.

To the first question, Garr is a very successful businessman. He does not need to sell shares to survive financially. That is why he turned the shares back to the Company. To be able to sell a few shares in bits and pieces is not worth the trouble (as an insider there are still stiff restrictions on the number of shares he can sell). He does, however, deserve to be compensated for all of the work he has done. If and when we close some of the major deals on the table, he will have earned the right to be properly compensated. That is the intent of transferring dome of the preferred shares to him. That provides the opportunity for him to be compensated in the future. Both the Company and Minaco-Tradex have recognized this factor, and this is the simplest way to provide compensation at a future date commensurate with his actual performance.The preferred shares are preferred in only one respect, and that is their multiple voting rights of 30,000,000 per share. There is no current market for them. They were issued to Minaco-Tradex exactly as announced. There are only 2,000 issued. They are currently all held by Minaco-Tradex. The transaction to transfer a portion of them to Mr. Winters has not yet been executed. All parties are acting simply on good faith.

As for your last question, the answer is also straightforward. While your percentage of the Company may be less than it was, we believe the assets acquired have added substantially more than the dilution factor. Like the age old addage; Would you rather have 100% of nothing, or half of something valuable?

Esprit will either grow, or wither on the vine. Under Garr’s leadership, the Company has taken an aggressive approach to growth, by diversifying into new areas that trade on the Company’s core competencies. Obviously we can’t expect to hit a home run on every single initiative. However, we have had a lot more opportunities ‘at bat’ since the strategic change. If only one deals works out well, the Company will be far ahead of where it would have been. We believe our actual batting percentage is going to be a lot more respectable than that.

Once we start closing contracts on the table, we should be able to silence all the naysayers. In the mean time, all the ‘chicken little contingent’ has been able to do is scare away a couple of potential deals with their endless criticisms, as well as potential new investors.

We look forward to the opportunity to shut them up once and for all. Why a shareholder would constantly complain while insisting they are ‘long’ is beyond us. If they think Esprit is such a terrible Company, sell and move on. Be a man, take your loss, and go invest brilliantly somewhere else.

Otherwise, be quiet and give us a chance to prove the value of what we are working on. Remember, when Xerox made the first duplicating machine, they thought it was a solution to a question that no one had asked, and expected it to go nowhere. Whoops. That turned out to be a bit of an under-estimate. Everyone wrote off Apple, until they came back.

Enough said.