Calypso Wireless (fka CLYW)

[qed]

I found this on another board ...
http://www.ragingbull.lycos.com/mboard/boards.cgi?board=CLYW&read=730

Why we may not be getting off the pinks.....

I own shares in another pink sheet company called GMED and below is a response from the President today as to the delay in getting off the pinks:


When will GenoMed move off the Pink Sheets and onto the OTC BB?

The first thing the company did when we got funding in November, 2001 was to prepare to move onto the OTC BB. It was supposed to be a 2 month exercise. Unfortunately, the Enron scandal and others occurred then, to which the SEC responded by tightening up its accounting rules. The rules for reporting stock options changed two or three times before the summer of 2002. Each time they changed, we had to submit revisions to our Form 10-SB.

We officially became eligible for the OTC BB on November 7, 2002. We subsequently went through three market makers, since NASD sent back questions which the first two MM's didn't want to waste their time with. The third MM helped us with the NASD, even going so far as to make a personal pitch for why we were doing valuable work. This was above and beyond the call of duty, since MM's can't be paid for this service. The NASD, like many people looking at our company, had a hard time understanding how such a small company could own such important intellectual property. In other words, they did not understand how science works.

After our last reply to the NASD in the spring of 2003, we haven't heard a word from them. In August, an article came out in a financial journal saying that the OTC BB was being eliminated, that it was being allowed to die by attrition. Anecdotal evidence suggests that this is true: two years ago, I'm told, 2-3 companies were being approved every day for the OTC BB, but very few new companies have been admitted to the OTC BB for the past year or so. The NASD, my source told me, no longer wants to be in the business of vouching for penny stocks. Another predictable response, I suppose, to the recent Wall Street scandals.

Our experience at GenoMed has been entirely consistent with this version of reality, which is why I present it. If the NASD wanted to be as transparent as companies are now supposed to be, you would think that the NASD might tell new companies like mine and investors that the OTC BB was now defunct. In particular, it will be hard for companies like GenoMed to attract institutional investors when they all keep thinking the OTC BB is still accepting new companies as in the old days. Their rules don't allow them to invest in Pink Sheet stocks.

In our own case, we no longer expect to hear from NASD about the OTC BB. Instead, we plan to remain on the Pink Sheets until our share price qualifies us for an exchange like the AMEX. Since our business is to improve the public's health, getting the word out to the average investor will benefit both our public health mission and our price per share. In this respect, it doesn't really matter that institutional investors won't invest in us because they still think the OTC BB is alive. Institutional investors will just be missing out on the early phase of company growth, when stock prices can go up by orders of magnitude instead of just a few percent.

All I can say is, thank God there's more than one exchange in this world. Thank God for competition!

But I digress. I hope this answers your question, which many people have also asked.

Yours sincerely,

Dave Moskowitz MD
CEO, GenoMed, Inc.