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CBIS - The long and winding road that

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newmedman Member Level  Friday, 11/18/11 11:45:38 AM
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CBIS - The long and winding road that leads to the new share class........ and medman with some time to kill

Some of the letters here have cleared up some of my questions about pricing...... Let's go back about a year and start with the first PRE 14C shall we... 12/21/2010
and the SEC response 01/18/2011
and the CBIS response 02/01/2011
(ii) Enable issuance of shares at a higher price:

Class A common stock should maintain a higher share price given the 30 for 1 conversion feature. This would enable the Company to issue Class A common stock at a higher price than that of Class B common stock. Market fluctuations or temporary price indifference may occur which do not reflect the 30:1 Class A common stock to Class B common stock conversion feature but, under those circumstances, market makers should quickly identify the overpriced class of security, convert the other class of security and collect the arbitrage profit, which will effectively correct the market.

(iii) Obtaining "greater flexibility in seeking capital and potential acquisition targets":

Class A common stock will trade near its respective conversion ratio in relation to Class B common stock (as outlined in Item 3(ii)) at or near $1.80 per share based on the closing price of the Company’s Class B common stock on December 20, 2010, or at or near $1.20 per share based on the closing price of the Company’s Class B common stock on January 28, 2011. Despite a penny stockbeing identified as a security whose trading price is under $5.00 per share, there are increased negative connotation for those securities trading under $1.00 per share and further limits a company’s ability to raise capital, in our opinion. We believe with the Company’s Class A common stock price over $1.00 it will afford us greater flexibility, in the form of a broader investor base, to raise capital for operations or for acquisitions.

And the SEC response 04/01/2011
and the CBIS response 05/12/2011 along with the second PRE 14C
We agree that in the near term, before and after the recapitalization, the Company’s financials will not change and there is little the Company can do to prevent market adjustments and possible values of the Company’s Class B common stock to drop to $0.05 or potentially lower, but we remain of the opinion that the price of the newly created Class A common stock will be $1.20 ($0.04 x 30) or higher based on the 30 to 1 conversion ratio into Class B common stock. Existing Class B common shareholders will initially receive all issued Class A common shares in the form of a dividend and therefore should view the distribution with a non-dilutive perspective as their relative ownership percentage of the Company will not change, but, regardless, no company can predict its share price will absolute certainty or control market forces and therefore our opinion may be incorrect.

The SEC response 05/19/2011
the CBIS response 06/09/2011 and the third PRE 14C
the SEC response 07/06/2011
the CBIS response 07/13/2011 and the fourth PRE 14C
the SEC response 07/25/2011
the CBIS response the same day and the first PRER 14C (the fifth PRE)
and finally the SEC acceptance 08/04/2011
and then the DEF 14C 08/18/2011
and after all that, the recent 8-K 11/15/2011

Thanks for all your hard work Dr. Bob and company... I hope it's a win win situation for all of us.
GLTA and GO CBIS !!!!

I am above the weakness of seeking to establish a
sequence of cause and effect, between the disaster and the
- Edgar Poe
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