SPOOZ Inc (SPZI)

[Gbathat]

Company issues big chunk of shares to financier at discount price (maybe .001 or so) to raise money for current operations (salaries, auditing, etc). Financier sells shares onto market for quick, certain profit.

That's my opinion. A few may be jumping on board, selling in hopes of buying in lower, or selling and running away angry, but I think its mostly dilution.

This was the state of things last spring. Luckily, I arrived towards the end of the dilution phase, got in pretty cheap and have held since.

Personally, I think it is a disservice to the long term shareholders. For instance, if you had 1.5 million shares before this dilution started, you essentially owned 1/1000th of the o/s. To maintain that fraction of ownership, you might have to by 500,000 more shares (if the o/s went to 2 billion). I think a lot of us loaded up on shares anticipating major revenues commencing soon and have been disappointed by the slower than expected progress over the last year.

If revenues are commencing and rate of growth will be high, then why not take out a 1-yr loan from somebody and pay them back double. With dilution, the company is decreasing our ownership by possibly up to 25%, but the profits to the company are really low. For instance, 100 million shares sold at 0.001 only gives $100,000. Maybe the tough market these days makes loans hard to come by, but I just wish there was a better answer than dilution.

But, that is life. Plans don't always go smoothly. If the company is successful in the end, we will be too.