Frelii, Inc. (FRLI)

[mcmike]

Due Diligence #5 (see end of post for my response 3dcg)

I spent a couple of hours on the phone today with

J. Pollack http://palmbeachpr.com/index.shtml

Brian Cook from theRegencyGroup

& Murray Fleming, XPNG IR. check the ihub box

..........
and who DID provide Agile Investments with the bad telephone number? I still don't know who that non-affiliated third party is.

Neither does Jason, Brian or Murray nor do any of these pretty knowledgeable persons have any ideas who is behind the large promotions "Superstock Investor" or the imminent?! OTC FN "Special Situations Report"
.........

What I did learn today is that J. Pollack & theRegencyGroup have a broad list of investment professionals that they contact on a periodic basis and that emails about XPNG have gone out to them.

The inside group, at least those who were part of the original Bayview Mgmt LLC which purchased the shell for XPNG are not looking for a short term trade. If one or some of them are organizing the promos, none of the folks I spoke with know anything about it.
....

Murray told me that the investor package has an 8 pager that describes in some detail the
I have heard people put down the idea of the play because it is a biotech startup and it takes years to see a return. The differences in this play are:
1. the company has a revenue-generating plan for the near term via the veterinary business plan that will ameliorate the common repetitive & dilutive money raising routines that many startups have to go through.
2. the qualitative and quantitative measure of the cancer marker make the diagnostive testing aspect a price-reasonable target goal that does NOT require FDA trials or approval. It will require relationships with a CLIA-certified lab.

If they should be so lucky as to get to the point of trying to develop a vaccine, which would need the FDA approval gauntlet, most traders will be long gone...

Anyone interested should at least read Section 8.01 Other events from the 3/18/05 8K12G3 that i referenced before. Here is the link again:

http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001072588%2D05%2D000047%2Etxt&FilePath....

The text is nearly identical to the 3 pager that Brian from the RegencyGroup sent me last Friday.

Still looking at Level II for the bid support before completing my position.


p.s. I asked almost everyone I spoke with today about the double-edged scenario: either the promotion and markup phase has yet to start, or 2. the accumulation and positioning was done very early in the .80-1.00 range and the promo will be a buy the rumor sell the news scenario for the monied interests that paid for the promos, and they have no intent to support the bid as was done in the LLLI case.

Noone had any answer. They really don't know who is behind the promo. Brian found it VERY unusual that SCHB has been selling consistently and capping the share price. He did not have much regard for momentum traders who just wanted to scalp. He did understand why LLLI piqued our interests and what bid support means to a successful promo. Aaron knows this as well.

I have done about all I can on this... burned all my cell minutes and more (ugh!). Will keep watching the level II box and sharing anything more that comes my way.

..........
How much should I ask of the promoters of the OTC FN "Special Situations Report" for catching the IR telephone error before the mailer went out? 800K glossies and postage all worthless? Hmmmm...