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Re: TheLuke post# 11925

Thursday, 08/28/2008 4:43:30 PM

Thursday, August 28, 2008 4:43:30 PM

Post# of 16569
Actually,the deal given to Five Star was a " Sweetheart Deal" for them, regardless if the are to dilute their ownership position. They are going to make a considerable amount of money when they sell of the rest to get to the 9.9% ownership. I think it could hurt HTOG a year or so down the road if UPDV, picks up the big $30,000,000. plus raise through a PPM and needs to offer a huge dilution on a convertible debenture. Five Star got way too much for so little and that, they got with ANTICIPATION of them putting in an additional $2,500,000 capital injection. Whether they were handed all the shares up front,in good faith (hope not) or a pro rata portion equal to the $2,500,000 was held back until they paid it up, is not disclosed. I have interpreted by action that there appears to be an extremely close affilated relationship. We will need to look at the Sept. 10Q and look to see if the money was actually given to HTOG. Keep a note on that one. Ciao Joe

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