Idle Media Inc (IDLM)

[wadirum1]

I have reread the May 2009 share prospectus several times, and my views are slightly changed from what I posted before.

Here's the history.

April 2008: 5mm restricted shares issued to Sawarynski (CEO)

Sept 2008: 542,750 restricted shares were issued to a small group of shareholders at 10 cents apiece.

Note: These were restricted shares, and they weren't deemed a public offering because so few people were involved. No public shares were available until the next event:

May 2009: The prospectus was filed to enable the holders of the 542,750 to sell their shares at 20 cents. The prospectus also enabled CEO to sell 25k of his 5mm. The total was 567,750. These were the free-trading shares of NGLF.

August 2009: Shares were increased by a forward split (in form of a dividend) at 23 per 1 share (22 paid out for each 1 held).

As of Aug 2009, there were 567,750 * 23 = 13mm shares freely trading and the balance of the 81,483,250 were restricted held by CEO.

Now we have the merger, in which the CEO cancelled 53mm shares and issued 40mm restricted to Datpiff. This brings the O/S to 81mm-53mm+40mm = 68mm O/S, of which 13mm is freely trading.

We don't know who owns the 13mm. But I think one of those folks got a margin call or panicked.

Comments? Corrections?

Wadi