Capital Growth Systems, Inc.(fka CGSYQ)

[kennypooh]

The thing here is Pivotal, the compnay that purchased all of CGSYQ's assets, etc, could have done that without "buying" common shares of CGSYQ. So what some of us here feel is they "purchased" the common shares because they are expecting a high rate of return on them. If they cancel the shares, Pivotal will have "purchased" the commons for no reason, therefore wasting money.

Teague....The problem with your 'explanation' is that Pivotal has not purchased any common shares...none!

They purchased all the previous outstanding convertible debentures and all outstanding warrants direct from private sellers (outside the BK). All 168 million outstanding shares in the shell (estate) are now owned by retail shareholders....PGC owns no commons. None of the debentures they own have been converted and none of the warrants they own have been exercised. Some posters are telling you otherwise and you are making the mistake of listening to idjets.

Page 5 of the filing Schedule 13D.

The plan of reorganization as ultimately confirmed by the court may involve extraordinary corporate transactions among the Issuer, PGC and affiliates of PGC, a transfer of substantially all of the assets of the Issuer to PGC or an affiliate of PGC, a change in the composition of the current board of directors of the Issuer, a material change in the capitalization or dividend policy of the Issuer, and/or changes in the corporate organizational documents of the Issuer. It is also anticipated that the Issuer’s common stock will cease to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association and may become eligible for termination of registration under the Securities Exchange Act under Section 12(g)(4) thereof as a result of this transaction or under the plan.

Neither PGC nor any of its affiliates, at this time, intend to acquire any additional securities of the Issuer. PGC currently does not intend to convert any of the debentures or exercise any of the warrants to acquire the Issuer’s common stock.