Frelii, Inc. (FRLI)

[mcmike]

email from theREGENCYGROUP today:

Greetings,
We have really been scratching our heads on the performance of XPNG!
Why has the selling been so aggressive? The company has been financed at
1.20 a share and the selling has still been relentless well under that
price. One of the answers appeared yesterday.
XPNG is now listed on the Nasdaq SHO list. At least 280,000 shares
are been held with a fail to deliver as of yesterday and we believe it
could be closer to 1 million shares. This means the stock has a significant
short position without shares being borrowed against the short position
(otherwise known as a Naked Short). We believe the naked short is
significantly higher than 280,000 shares, which are the minimum shares held
short, that would force XPNG on to the SHO list. At least a half a
percentage point of the total shares outstanding held naked short is
required to have a stock appear on the SHO list. View the list at the link
below and scroll to the very bottom to see for your self.

http://www.nasdaqtrader.com/aspx/regsho.aspx

PS I consider this to be a positive since there is definite support in the
stock now. I'd prefer this never have happened, but at least we have
confirmation about where the selling has been coming from. All shorts have
to be bought back at some point.

Best Regards,
Brian Cook
303 771-7300