Share Issuance post Proxy Approval:
Midsummer:
Settlement took place on August 9. This settlement adjusted holders warrants also
but is NOT considered part of global settlement. ACT issued 36 million shares to Midsummer
already and we still owe them 30,585,774 shares + 3,058,577 shares/month in penalty fees.
**Both this settlement agreement and the agreement with "40" holders in global settlement
give ACT 10 business days to issue shares after proxy approval. That translates into all
shares being issued no later than February 7. (It's also possible shares could
be issued or some of them right after approval, Feb 7 is maximum time)
Using 6 months of penalty shares(Aug-Feb) we have approx. 18,351,462
TOTAL OWED MIDSUMMER: 48,937,236
GLOBAL SETTLEMENT SHARES:
"40" Holders who signed Settlement and Mutual Release Agreement....240.5 million
Total KNOWN global and non-global shares to be issued...289,437,236
UKNOWNS related to global settlement:
(4)holders unreachable per Rabin..8.5 million shares
Biggest and final unknown is CAMOFI/CAMZHN lawsuit which no settlement has yet to be filed
or announced. Per Rabins DEC 12 blog, we were in "advanced settlement discussions".
CAMOFI/CAMZHN was one of the largest holders of notes/warrants so this one is important.
CAMOFI/CAMZHN is claiming they are due 131MM shares. IMO, they are using a lower reset
price than the majority of others and therefore the shares claimed is so much higher. It is my
opinion they held approx. the same as Midsummer. If that is true and the normal reset is applied
then approx 65MM, 1/2 of what they claim, would be due. Their claim could come in much less than
I am figuring or much more, no way to know at this time...It seems reasonable to believe this
settlement would come in prior to proxy vote on the 24th, again jmo..
SUMMARY:
ACT will issue no less than 289MM shares prior to Feb 7.
Unknown additions to the above number range from 0 - 140MM shares.
