Greenshift Corporation (GERS)

[nobody12378]

Jim, NYC, Kubsiak5

I think that we need to be careful about being too sanguine about the dilution. Each day by itself is probably not meaningful but the pace and cumulative impact is becoming significant.

I estimate the O/S count to be approaching 22 million. Doesn't sound like a lot, but that is a 38% increase since the last formal announcement. This creates two problems. One is psychological for potential investors -- where and when is the dilution going to end, how do you calculate the value of a share if the O/S counts keeps increasing? The second is with all the revenue coming in why is it necessary to increase the pace of dilution at this late date? What expenditures and revenue drains are causing the dilution to continue to be necessary? I know that KK stated that we should expect "some" dilution, but 38% is more than “some” and his statement cannot be considered cover to double the number of shares in six to nine months. It is not the number of shares today but the rate of their growth that is the problem.

The dilution also interacts with the share price to artificially and unnecessarily increase the O/S count; you have heard my thesis on this and why the dilution in itself argues for getting the PPS moving forward sooner than later. KK’s silence is killing us in this regard and I hope that he explains the reason(s) in the 10K. If he is silent on the silence, to coin a phrase, that will be maddening.

No, it is a mistake in my judgment to view each day's dilution as non significant -- it is the combined impact and what it represents that is becoming significant. It is also a mistake to assume that KK can do no wrong as many here believe. His record of apparent lack of consideration for the common shareholders who have kept the company afloat, not YAGI as some of the apologists state, is unblemished. We do need to be vigilant.

I can’t wait to read the KK apologists response.