CSMG Technologies, Inc (fka CTGI)

[bbhuey]

If you notice the convertible financing was done on 11/17/08
when the stock was CTGI was trading at $.20 and not effective
until 6 months later

It was convertible into stock upon notice by the holder
at the lower of $2.10 or the average market price of 18 consecutive trading days.

The timing of this is 6 months from now and I think it would
before the filing of an S-1 or IPO offering

If you notice the out here for CTgi is the conversion at the
way this is worded at the lowest of $2.10 or average 18 day market price.

There is also a floor of $.38 that the company can buy the shares for 118% if the stock gets too cheap

So I think the company has a shut off valve to counter
toxic financing since they have been through this with Cornell
once before.

At $2.10 that is 10 times greater than $.20 when the stock was traded when this financing was concluded

Evidently the company y must believe that the value of its stock will be no lower than $.38 and greater than $2.10.

In this regard they would issue about 714,000 shares for each note at the $2.10 which would then not be too dilutive or toxic.

CTGI must need these these monies to back up the CO2
technology since such the LTC IPO funds could not be used
to fund the CO2 branch of their operations without the consent
of their Ukrainian shareholders.

I was reading tha there is a lot of money on the sidelines
and that a lot of IPO s have been shelved waiting for a
better financial climate or issuing environment.

Investors will be very selective and only the better IPOs will get funding.


Regards,
bbhuey

waiting








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