VirTra Inc (VTSI)

[ByloCellhi]

Dutchess

I have said from day 1 - Dutchess is a deal with the devil but unfortunately it is the only option for these undercapitalized high risk OTCBB companies. Creates a ton of dilution and obviously Dutchess is NOT in the business to lose $$ so my opinion as previous posters have stated they both sides short and long to hedge their bets.

From the web: "Dutchess Private Equities today (9/18/02) announced it is re-opening it regulation D hedge fund product after a two years of being closed. "After two successful years with a gain of 23% in 2000 and a gain of 12% this year, we are ready to accept new capital" stated Douglas Leighton, portfolio manager of the fund. The fund invest in PIPE's (Private Investment in Public Equity). In the current market environment, this has been the de-facto standard for a public company to raise money. That has allowed Dutchess to gain a strong foothold in this niche market. The fund does not use leverage and all transactions it enters are always hedged."

Here are some examples where companies decided to opt out of the Dutchess deals....

IBSS Announces Termination of Existing Equity Line of Credit with Dutchess Private Equities Fund, L.P.

COLUMBIA, S.C.--Integrated Business Systems and Services, Inc., ("IBSS"
or the "Company") (OTCBB: IBSS), today announced that it has
terminated its existing equity line of credit with Dutchess Private
Equities Fund, L.P.

George Mendenhall, CEO of IBSS, commented, "For a variety of
business reasons, we elected not to draw down on the Dutchess equity
line of credit and have been exploring alternative sources of capital.
As such, we do not think that it is in the best business interests of
the Company and its shareholders at this time to keep the original
equity line of credit with Dutchess in place."

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Maisonette International Enterprises Ltd. Completes Private Placement, Cancels $5 Million Credit Line

April 28, 2005

(OTC:MAEN - News) http://www.maisonetteworld.com a Vancouver based Nevada Holding company with subsidiaries operating predominantly in the e-Commerce and online retailing field in the USA, Canada and Europe (www.mymaisonette.com) , announced today that it has concluded and received funds for a private placement arrangement with a private investment firm for the gross amount of US$500 thousand before legal and advisory fees, and in the process has terminated the US$5 million equity line of credit financing with Boston based Dutchess Private Equities Fund II, LLP, a fund advised by Dutchess Advisors, LLC.

Alain Ghiai, the Company's Chairman commented, "We believe it is in the best interest of the company and our shareholders to terminate this equity line of credit facility and utilize alternative financing methods to execute our business plan. We have successfully closed a half a million dollars private equity line and are in talks with other financial institutions for a better financing facility. As our Company grows and sales increase, the value of our share will increase and the amount of shares required to raise working capital will diminish, this is one of the reasons why we are choosing to go with other financing solutions.