Viaspace, Inc. (VSPC)

[tommy 9 fingers]

Hi Tanne,

The translation I think came across a little funny but it sound like you expect dilution. So I will respond with what I know and see what you think. Please correct me if I am wrong.

VSPC has:
1,500,000,000 shares authorized, 874,644,627 issued and outstanding in 2009 according to their 08/14/2009 10-Q. Leaving a reserve since that date of 625,335,373 shares or 625 mil shares. This campaign I estimate is costing 11 mil shares leaving them 614 mil shares. The first closing with Chang cost about 28 mil shares lowering the reserve to 586 mil shares. If they close deal with Chang of which would be owed $5.6 mil dollars at today share price comes in at about 238 mil in shares. This lowers the reserved to 348 mil. This might be lower still as they may have had to pay salaries and cost for the year etc. So I think VSPC has paid for this promo and it is to raise the share price by November 21 when they have to pay Chang in cash or stock. The higher the share price on 11/21 the less shares they have to pay Chang. So this is why I think they are doing the promo. But we should benefit as well.

VGE will have A/S of 50 mil and a O/S of 8.6 mil leaving (ownership shares) about 41 million shares to raise capital with to pay for land, operating cost etc. So I don’t think VSPC will have to further dilute and VSPC will be receiving the revenue from IPA not VGE.