My friend went to the meeting and sent me his notes.
We attended the meeting and it was quite informative. About 50 people were there, and the formal meeting lasted about 1 hour.
They passed out a voting ballot for all stock holders of June 14 and earlier. We were asked to vote on the items on the ballot.
I've attached a copy of the 5 items on the ballot. After a brief waiting period, they counted the "for" votes on each item and all passed with almost 100% "for ". At this point they stated that all 5 items are effective immediately, but it may take some time for it all to be processed and executed.
The president, Ronald Hodge, and his Brother Gregg did much of the talking.
They are both salesmen, not technologist.
Ronald made it clear that it is a "critical transition" in moving into the newly named company "General Payment Systems" and there will be the need for a greater technical presence in the company. It was not clear to me whether they had already started to increase the staff to accommodate this or not, but it was certainly clear that this "critical transition" is necessary for the company to grow in the way they wish it to grow.
Item 1 in the ballot authorizes them to issue up to 2,000,000,000 shares rather the 1,000,000,000 shares currently authorized. They explained that this does not dilute the stock to the share holders, but merely allows them to issue more stock as they work toward
recapitalizing the company.
They emphasized that by going from Prison Systems to General Payment Systems, they open a very large opportunity to serve the many "window " payment systems that currently exist around the country. By that, they mean payments that are made at a window like marriage licenses, traffic ticket payments, DMV , court payments, etc.
Their position is that if they can locate Kiosk's in places that have window transactions and if they can sell the idea that the kiosk is more friendly to the customer, more time efficient, more cost effective, etc,etc., then they should be able to take advantage of a claim they make that there are $500,000,000 transactions via "window" payments made each year. and they should be able to build a business model around the idea of capturing some of that business.
They pointed out that most broker dealers won't deal in penny stocks, and that is one of the reasons for the 100:1 split.
They said the in order to go public on Nasdaq, the stock must sell for over $4 per share, there must be at least 400 stock holders, and the company must be worth over $4,000,000.
I will post the 5 notes separately.
