Okay...here goes nothing...but I think the board is being WAY more negative than is justified - and I think our friend Arpvrp has been posting some very valuable information that we have skimmed over in our knee-jerk reactions to the postings.
Let me reiterate some of the things he has pointed out that I think are very important (granted, I am not a finance person, but I'm trying here):
1) The Series C can not be converted until the Series D have been converted, which have a par value of .01 and a fixed rate of .02
2) YA is now the major shareholder
3) The lock-up provision: The series C can not be converted because they have been locked-up. Read the wikipedia article on a lock-up provision and it clearly states that lock up provisions are used as a precursor to a buy-out and limits the MAJOR shareholder from selling the stock to anyone besides the potential buyer.
4) The article also states that in a stock lock-up, the bidder is able to either purchase 1) authorized but unissued shares of the major or controlling stockholder, or 2) the shares of one or more large stockholders.
5) The reverse split: The filing does NOT state "provision regarding the EXECUTION of a 100:1 reverse stock split" it says the AFFECTATION of a reverse stock split. Affectation is synonymous with "false" or "artificial." It does not say it is going to happen - it only says that there were provision made around the company's artificial display of making a 100:1 reverse split without reducing the authorized amount of common stock. It then mentions that more detail can be found in 10.1, which is not included in the filing.
Given all this, I think that the company is about to be sold and this is the legal document tying up the YA ends of the deal. At a minimum, I think there is not enough evidence to say we are all screwed and IM has just been a pawn. When we look back at 2009 - A LOT has been accomplished and just simply don't believe that this was just all one big scam. The experience and legitimacy of the partners we have already made deals with is just too convincing for me.
Interested to know other people's thoughts. For what it's worth (and I'm sure I'll lose some credibility for even mentioning this), but the agreement did occur on Jan 5th, the date Zacked mentioned.
Regardless, I am shamelessly long and have some loose cash ready for tomorrow - I'll be buying up what everyone is tossing away.
As always, longs stay long.
AI
