So is it our general opinion that Dennis will operate under 504 Reg D until that runs out (12 months) and then possibly file his 15c-211. Then he will need to entice a MM to file under 2-11 and thereby create a market. Am I following all of this correctly?
We started trading around about July 1st. I'm guessing that is the effective date that the Reg D uses. If so then he has until the end of June 2006 to utilize the 504 shares to raise up to $1 million. Anyone know if he needs to let us know if he is going to increase the max Authorized shares under all these rules? My guess though is that based on that old PR about naked shorts killing the stock price, he probably decided that these 504 shares will only be used in emergency situations to raise capital. Perhaps $10,000 here and $10,000 there. At these levels thats about 3.3 million shares each time. How many times could he have possibly needed that kind of money since July? Based on the chart I'd say there were only about 15-20 days where he could have come close to that kind of volume. So once again I say that he may have sold about 60-80 million shares since then plus the original 20 million comes to less then 100 million outstanding shares.
So from now until the end of June Dennis can still raise $300,000 at these levels and more if the stock price moves. Not sure he will need that much though due to the inflow of cash from loft sales, commercial space rentals, and debt financing. I guess it would be his call if he thinks they can manage on the cash they have and possibly file the 15c-211 earlier. We still are not sure if that negates the 504D or not though. Anyone venture a guess as to how much it costs to file the 15c-211?
