1812 Brewing Company Inc (KEGS)

[tommy boy]

O.K. after reading up on it, and knowing alot about SWVC at least their financing portion, I wouldn't classify this as toxic or semi-toxic. The .001 shares have no interest rate, so it is impossible for Cornell to keep them around indefinitely, second they have a maturity date in march 2009, so he has to convert at some point. Tom wasn't responsible for that horrible deal, maybe not the best decision to take this shell on, but still the deal wasn't his. The deals he has made concerning CD since then have not been nearly as extreme, and again they have maturity dates. Plus the death spiral depends on stocks to continually decrease to allow the hedge funds to use the interest rates with now dead stock prices to ruin a company, Tom gave them good fixed rates that should negate that. The most they can make by selling short is 200% which seems to be one way the hedge funds operate. The other way is to slowly introduce the stocks into the market allowing for the share price not to be smothered which has the capability to give them more than a 200% gain, this is what has been happening and shows that even the hedge fund (Cornell) has faith in this company, otherwise they would dump and sell short.