Capital Growth Systems, Inc.(fka CGSYQ)

[hedge_fun]

MONSTER DD on CGSYQ's Majority Shareholder..........

Pivotal Group is one of the most respected INVESTMENT firms in the nation, and is currently PRIVATE.

http://www.pivotalgroup.com/

In December Pivotal Group bought 269,219,653 shares and became a 61.5% majority shareholder per this filed Schedule 13D.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7626703#CAPITALGROWTH_SC-13D_HTM_REF_ID0E2FAG

A recent email from the company shows Global Capacity, listed on Pivotal's website as an investment, has no plans to remain public.

As announced on February 1st, 2011, the sale of substantially all the assets of Capital Growth Systems d/b/a Global Capacity to Pivotal Group has been approved by the Bankruptcy Court of Delaware. The company is now moving forward with the regulatory approval process and expects to exit bankruptcy by May 31st, 2011. Also as announced, the Company will emerge as a privately held company with no debt and positive monthly cash flow operations.

This announcement has resulted in a number of investors inquiring as to the status of their shares in Capital Growth Systems that are held today. The structure of the transaction is such that Pivotal has only acquired the assets and the shares will remain with the estate. As we work towards the structure of the wind down of the estate, more information will become available regarding the status of the CGSY shares moving forward.

It is also NOTEWORTHY that many insiders from CGSY hold over 34MM shares. Those insiders are still with the company, and would obviously LOVE to get a ROI since many have held for years. The fact that those shareholders will be working for Pivotal through the acquisition in bankruptcy, should boost moral as it becomes obvious their shares will have once again have value.

It only makes sense that Pivotal Group bought those shares in December with the intent of completing a reverse acquisition by means of acquiring the majority of shares to take Pivotal Group public.

They have been approved by the court to purchase the assets.

Why would you purchase 61.5% of the OS unless you had plans for those shares?

It is my opinion they intend to take Pivotal Group public through a reverse acquisition. They NOW have 269 million reasons to do so!

REVERSE ACQUISTION DEFINED;

A technique used by a private company to go public without jumping through all the regulatory hoops that going public usually requires.

https://www.stocktradebroking.co.uk/Skipton/Guidance/Education/Glossary.asp