Complete Genomics, Inc (GNOM)

[Opti Mist]

I have questions back and forth with John Peterson on this issue. He says they own nothing.

I am trying to understand the following:

Reporting Person Number of Shares of Percentage of Number of
Common Stock Outstanding Shares Outstanding Shares
Beneficially of Common Stock2 of Common Stock3
Owned1,2
Wanxiang Group 34,839,097 9.99% 348,739,707
Wanxiang America 34,839,097 9.99% 348,739,707
Wanxiang Foundation 34,839,097 9.99% 348,739,707
Guanqiu Foundation 34,839,097 9.99% 348,739,707
Dr. Lu 34,839,097 9.99% 348,739,707

This is from
http://bit.ly/RAdlMf 13D&filingDate=10/...

Does this not give Wanxiang incentive to maintain share value.

John Petersen 53584
No it doesn't. The Form 13D/A Wanxiang filed with the SEC on October 15th is here.

http://1.usa.gov/WgHcfy

The SEC's beneficial ownership rules require a holder like Wanxaing to report both shares owned, and shares that can be acquired on the exercise of warrants and options.

When Wanxaing made the first bridge loan advances to A123, it got a bridge loan warrant that can be exercised to buy shares one of two ways. Wanxiang can either write a check for the exercise price, or exchange its secured debt for the exercise price. Neither event seems likely until the Bankruptcy is resolved because the secured creditor position is so much more advantageous than the stockholder position.