RushNet Inc (RSHN)

[eyespysomething]

Anyone know what will happen with the 6 billion shares that were put in escrow? Since the Garden deal was never completed with RSHN will the shares used for that now be retired?

RushNet Increases Authorized Shares, Will Pledge Securities
Business Wire, August 3, 2007

BLUE ISLAND, Ill. -- RushNet, Inc. (RSHN) has increased its authorized shares this week by 6 Billion in order to complete its purchase of Garden Beverage as well as the upcoming joint venture investment in Amicalola Water Co. Both will require a substantial pledge of RushNet, Inc. securities as part of the company's participation. The additional authorized shares encompass a large amount of restricted shares to be held in escrow, pending the completion of both investments.

Robert Corr, President of RushNet, stated: "Unfortunately, the weak share price has left us no alternative but to increase our total authorized shares to 12 Billion. It had been our expectation that the share price would have been higher at this point and thereby kept the approaching share issuance to a smaller amount. But due to the Agreement we have in place with Garden, and our proposed investment agreement upcoming in Amicalola, we were forced to issue substantially more shares than planned to maintain the dollar equivalence of the pledged securities."

Robert Corr went on further to state: "While it may appear out of line to some, this increase in authorized shares is vital for us to implement our strategic development plan. The additional bottling capacity, and an optimum water source for e-water[R] at Amicalola, as well as strengthening our Midwest regional distribution impact through Garden, will foster long term growth and value to both the company and its investors."

http://findarticles.com/p/articles/mi_m0EIN/is_2007_August_3/ai_n19395632