Michelex Corp (fka MLXO)

[sawdin]

I just had a long conversation with Tom Gramuglia. Obviously, go back and read Investo's posts to get some background. I don't have a lot of time now, so I'll just mention three things:

1) Expect an 8K filing dealing with what has happened to cause pps problems and late filing and general approach to correct problem (i.e., new financing).

2) Filing will be done before going pink

3) The main problem w/ the company is that they do not have the cash flow to pay for raw materials! They are operating way below 100% capacity and have to turn business away. This is troubling, you would think that terms w/ the suppliers could be worked out if they have customers that want their product. I must admit that I didn't press Tom on this issue. Maybe their suppliers won't extend them any credit. That is not a good sign. In essence, they need an infusion of funds.

Dino