NXXI Inc (fka NXXIQ)

[jackk_lutz]

Midsummer's shares came from dividends paid to them (in leiu of cash) by the company..The CEO of Pharmachem, (the ingredients co.) obtained apx. 7M of his shares also from dividends and then outrightly purchased his other nearly 8M shares on the open market..
Midsummer is now in the process of testing the waters with other Preferred investors to see if they want to all join forces and redeem their Preferred Shares into Common shares and even purchase more shares if necessary..I believe this is in hopes of gaining the 51% majority of Common Shares needed to take over management of the company..
Unless the company can pay the balance of their qt. dividends in cash (at the current share price) the company will be issuing the Preferred Shareholders apx. another 100,000 shares as dividends by 11/11/11 when the redemption comes due..In my opinion, the company should quickly offer shares to stockholders at bargain prices to dilute the stock, thus preventing the consortium of Preferred Share investors from gaining the 51% majority needed to takeove control of the company..Another way would be to get a 3rd party "White Squire" to buy a large amount of stock (but not controlling interest) to prevent any "hostile takeover"..