CSG Inc. (fka CYSG)

[Debbie777]

I just read the information E-trade sent me by e-mail (at 1:20 am).. I now have a headache!

Here are some of the key things I think I got from it (please correct me if I misunderstood anything!)

The positive:

1. The asset sale is for $3.8M
- $600k of that will be held in an escrow account by ESKO in case of any indemnification claims. If no claims, the money will be paid to the company as followed: $100k in 18 months, 50K in 24 months, the remainder in 30 Months
- The company must maintain a net worth of $1.3M for a period of 39 months (which means they have to have some kind of corporate identity for that period of time).

The negatives:

1. The officers received approx 750M shares as a bonus for the transaction (for a $3.8M transaction..are you kidding me?). Some may look at that as a positive, I look at it as a lot of dilution.

2. It's not going to be easy to exercise dissenter's rights.