Michelex Corp (fka MLXO)

[sawdin]

Can someone make sense of the following portion of the April 13 Form 8K filing:http://www.pinksheets.com/quote/print_filings.jsp?url=%2Fredirect.asp%3Ffilename%3D0001013762%252D05...

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On December 30, 2004, the Registrant entered into an Agreement of Sale, dated December 30, 2004 (the "Agreement of Sale"), with Cynthia Cassell ("Seller") pursuant to which the Registrant acquired all of the issued and outstanding capital stock ("Stock") of Hindsight Records, Inc. ("Hindsight"), a California corporation. Approximately one week prior thereto, Seller had acquired Hindsight from Thomas Gramuglia ("Gramuglia"), one of the Registrant's directors and its Vice-President and Treasurer, in exchange for a promissory note from Gramuglia in the amount of $800,000. Seller is the mother of Gramuglia's youngest child.

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The sentence that reads "Approximately one week prior thereto, Seller had acquired Hindsight from..." makes it sound as if Gramuglia owned Hindsight and then either sold or gave it to his wife, who then sold it to MXLO. Sounds a little fishy to me. Does anyone have any information on this sale?

TIA,
Dino