CALI Holdings, Inc.

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On May 9, 2005, the Company registered an offering circular with the SEC for up to 1,666,666,667 shares of common stock to be sold under Regulation E of the Investment Act to make investments in eligible emerging or early-stage companies in various fields of business by contributing capital and providing management assistance. As a Business Development Company, the Company can sell up to $5,000,000 in common stock every twelve months under an exemption from registration.