THE FACT A NEW LARGE STOCKHOLDER HAS EMERGED, WILL THIS IMPACT UPON THE COMPANY’S PLANS?: We are aware and have verified that a stockholder has now accumulated 19,600,000,000 shares of the Company’s free trading and unrestricted stock, representing 23.2% of our Company’s outstanding shares of Common Stock. They will be filing a Schedule 13-D to reflect their shareholding. We understand that they will in physical possession of these shares of our Company’s Stock by Monday June 28, 2010; placing them in possession in excess of 5% of our outstanding shares of Common Stock. They are required to file, with ten days from that date, the Schedule 13-D. Their identity will be revealed upon their filing of the Schedule 13-D.
They will then become an Affiliate and therefore will be bound to disclose all additional purchases of the Company’s shares of Common Stock. Furthermore, they are not permitted to dispose of in excess of 1% of the Company’s shares of Common Stock, every ninety days.
We welcome their shareholding and any additional purchases of our shares of Common Stock as they are substantially reducing the “float”. The fact that they are holding their shares of our Common Stock in certificate form clearly indicates that they are not sellers of our shares of Common Stock.
WHAT IS THE “FREE FLOAT” OF THE COMPANY AND IS IT LIKELY THAT THIS WILL DECREASED?:
The number of the outstanding shares of our Common Stock does not represent the “free float” of our Company. No less than 5 billion of our outstanding shares of our Common Stock are restricted and are therefore not free trading. A single new stockholder already holds 19.6 billion of our shares of Common Stock. We are aware that this new stockholder could acquire no less than an additional 15 billion shares of our free trading shares of Common Stock from identifiable stockholders, should it so wish, as these stockholders will not dispose of any its stock in our Company at current market prices.
Should this new substantial stockholder continue to increase its stockholding in our Company, the “free float” will be decreased accordingly.