Koil Energy Solutions Inc. (KLNG)

[rockitt]

jds,

I am trying to see how this exchange of preferred shares into common is a signal of confidence of Smith and Budrunas. To me it looks like one hell of a nice payday.

Basically they took pref shares valued at $5 mil and exchanged them for 25,866,529 common shares valued at $ 18,365,235 based on the closing price of $.71 on 3/24/2008.

A $13.3 million payday. Really it is alot more since there is no cost basis to any of these shares in the first place (IMO).

I do not see how this adds equity to the balance sheet either. Maybe some of the accountants on board can explain that one.

I see this as nothing more than spin by our CAO, plain and simple.

rockitt