But there are no “linkages” between ASYI/GCS????…
That is correct … but only if you’re too blind to see them. The “linkages” are (1) knowledge and (2) innovation.
Say whatever you will, ASYI’s JetEngine Software was revolutionary in its application, as it sought to provide much-needed SOLUTIONS to many of the problems that plagued an entire industry … commercial airlines. In just 2 short years, tens of millions of dollars were spent by ASYI in its quest to create those SOLUTIONS. For our purposes, it’s totally unimportant that it failed in its effort. It is, however, VERY important that it made the attempt.
This is true because it’s of no small coincidence that Merus Capital and Dynamic Intelligence, which ONLY invest in firms that develop innovative software, were nowhere to be seen (when ASYI was doing business as Wolf Resources, and engaged in mining operations) UNTIL ASYI successfully acquired JetEngine and re-directed its corporate focus to matters concerning the creation of software-related SOLUTIONS to a growing problem.
And when it came to pass that ASYI could not create the SOLUTIONS that it sought before its moneys ran out, Merus and Dynamic became big-time-bag-holders.
If you visit the Merus Capital blog, which is entitled: “The Real Software Blog”, you will become immediately convinced that the hedge fund makes every conceivable attempt to stay on top of any news concerning small software development companies that are creating innovative products. Global Convergence SOLUTIONS – and its SOLUTIONS-based suite of products – has been in operation for over 6 years; and during that time its highly innovative software has been the subject of many in-depth trade articles; and it has attended many software trade shows; and it sits on the board of two trade organizations. In the tightly-knit, ‘niche’ industry of telecommunications software development, IT IS VIRTUALLY INCONCEIVABLE THAT MERUS CAPITAL WOULD NOT HAVE HAD A RAPIDLY RISING STAR LIKE GLOBAL CONVERGENCE SOLUTIONS ON ITS RADAR SCREEN.
So then, if you’re Merus Capital, and you want to own a piece of such a rising star, there only two ways in which that can be achieved:
1. You can offer GCS venture financing, and pray that it is stupid enough to accept $5,000,000 or so for 40% of the company and a seat on its BOD; and when it ultimately goes public, Merus Capital will make a killing. But in this regard, GCS has publicly stated (as recently as earlier this year) that it has no intention whatsoever in funding its rapid future growth with venture capital.
2. Or you can seek to SWAP your virtually worthless shares of ASYI for the shares of Global Convergence SOLUTIONS by structuring a reverse merger that will bring just that outcome about. And you can entice GCS to go along with your plan if you offer it something that is terribly hard to refuse -- $28,000,000.00 of ABSOLUTELY FREE NOLs to offset 20 years of future income, as well as 5 years of previous income.
Clearly, this is what took place, and is now taking place. And it’s taking place by virtue of the software-related LINKAGE involved: Indeed, the very EXISTENCE of Merus Capital, and Dynamic Intelligence, and ASYI, and MKHD ALL pertains to SOFTWARE development.
Ignore that very obvious LINKAGE at your future financial peril.
