Videolocity International Inc (VCTY)

[glidingone]

? Valuation includes the number of shares in the OS/AS... Investors look at that when determining what a stock is worth.

http://www.otcmarkets.com/stock/VCTY/company-info

Here are the numbers for VCTY on pinksheets... take it for what one will... there are 4.795 BILLION shares in the OS. That is how much the stock can be diluted up to.. that factors into the equation...

Share Structure
Market Value1 $2,877,479 a/o Mar 31, 2011
Shares Outstanding 4,795,797,814 a/o Feb 17, 2011
Float 146,262,970 a/o Sep 30, 2010
Authorized Shares 4,888,000,000 a/o Sep 30, 2010
Par Value 0.001

Prove how many shares are free trading or are not... While we are at it - what exactly is the current Float and amount of free trading shares... how does one price/valuate a stock without knowing what the Float/free trading shares are?

Here is what VCTY's own IR company said to me:

Fri, Aug 20 2010 5:13pm
Good day,

Regarding the number of shares - can you explain the portion of the shares that were NOT accounted for in the PR dated July 19th 2010 (that dealt with shareholder's questions as to dilution) There is an unaccounted for 1.051bn shares according to that tally. This is really concerning and makes many folks hesitant to invest with several billion shares out there and with just over 1 billion unaccounted for - Here is what I have tallied from that PR:

1bn restricted shares "allocated" to Tactician U.

PLUS

1.5bn restricted shares "allocated" to China Hydro Co.

PLUS

300mm restricted shares "allocated" to Video Rental Co.

PLUS

105mm in the current float

SUM = 2.905bn shares.

That leaves 1.051bn unallocated shares short, if the Pinksheets number of 3.956bn share count is correct.

If the number of shares on Pinksheets if incorrect - what steps are being taken to correct this error? Please explain in detail so that I as a shareholder can understand what and where these share are and reside.

Thank you in advance.

Mon, Aug 23 2010 11:37am - Jeff Allen
Long time shareholders.
JA

Mon, Aug 23 2010 11:42am
Good Monday,

Thank you - can you expand further upon that response? So these are what type of shares and are they part of the float? When will this extra billion shares be released into trading etc?

Any light you can shed on this would be appreciated so that I can better understand why this number of shares is included but is not part of the float.

Thank you! - Looking forward to Hydro merger news later this month.

Mon, Aug 23 2010 11:45am - Jeff Allen
So these are what type of shares and are they part of the float?......Free trading. When will this extra billion shares be released into trading etc?... No news on that yet.
JA

Thu, Aug 26 2010 3:49pm
VCTY

Good Thursday,

With regard to the 1.051 billion shares - you state free trading - so those shares ARE or ARE NOT part of the float (because free trading would infer that they are actively traded). Please correct me if I am in error - just trying to figure this out because it is not clear & folks are beginning to get a little bit doubtful that the float is indeed 105 million (can you confirm that?)

Thank you for your time,

A

Fri, Aug 27 2010 12:42pm
Good Friday,

As per the update on OTC markets - the float has now more than doubled.... to 375,000,000 as of Aug 27, 2010

So the PR dated July 19th 2010 stating dilution was what? Quote: "addresses the Investors' inquiry
about the share structure of VCTY and the shares allocation. The company does so, to dismiss any possible rumors about the company dilution. Videolocity International, Inc. management allocated company shares as follows:"

Can you please address why this change was made and why VCTY would take this action towards it's shareholders who are patiently waiting for promised mergers? Only to see dilution occur.

Thank you in advance.