Aisystems, Inc. (fka ASYI)

[Clutch Cargo]

Another take on Keetch’s VERY excellent find…


Mark Delaney, the marketing and business developer at GCS; was the guy that I spoke to when I called GCS in mid-August in order to find out if the merger was still a go. During that call he gruffly told me: “No! There will be no merger! We are not going to be a public company!” … and so I quickly got off the phone.

And here he is in the article telling us two VERY important things that INSTANTLY contradict oneanother:

1. “By merging with the publically held MKHD, GCS believes that it will gain the necessary financial standing and stability to attract Tier 1 carrier customers, which may have previously overlooked the company. All without the need for venture capital investment. “

This statement CLEARLY supports what I stated yesterday; GCS is NOT interested in hooking-up with a loan from Merus Capital or any other hedgefund.

So then, if you’re want to expand in order to attract “Tier 1 clients” and “become a dominant player in the marketplace”, but you want to do that “without the need for venture capital investment”, then there’s only ONE way that you can get the necessary money :.. and that’s by reverse merging into a public company and THEN doing a PIPE financing. And that’s EXACTLY what GCS’s CEO alluded to in his PR of June 15th:

According to Neal Axelrad, CEO of GCS, “We are thrilled to have the opportunity to explore a combination of MKHD and GCS that will allow us to accelerate our growth and address our ongoing capital needs.”

But Keetch’s article CLEARLY corroborates MUCH more than that, as Delaney goes on to say:

“GCS is also keen to diversify its customer base geographically and hopes that combining with MKHD will provide it with the necessary investment in sales and marketing to do so. At the moment 75% of the company’s sales are drawn from North America, but Delaney hopes for a broader geographical spread and is eyeing opportunities in Central and Latin America, as well as western Europe and Asia.” [i

So then traders, ask yourself this question: … how are you going to get to “Central and Latin America, as well as western Europe and Asia” … when you’re presently stuck in small-time, run-down, leased office complex that’s situated in a former cow pasture in Monroe Township, New Jersey … HUH? Again the answer: by reverse merging into a public company and THEN doing a PIPE financing

DO YOU SEE THE DOUBLE-SPEAK HERE? DO YOU SEE THE TRAP THAT DELANEY’S OWN WORDS HAVE CREATED FOR HIM?

He wants GCS to be a GLOBAL player (in the not too distant future), and yet he doesn’t want to borrow money from a venture capitalist. So how’s he going to get it, huh.

Keetch, my dear … you’re WONDERFUL