Replies to post #7668 on RushNet Inc (RSHN)

[sojourner]

erdos: I VERY much doubt that because there would no shares left for acquisitions, which is Lynch's M.O. The game is to buy other companies and bottlers with STOCK not CASH. You can't do that if you have no shares in the treasury to do so.

[waterpro42]

Well you didn't lose much since you dumped most of your holdings a few weeks ago, and I do believe you glass half empty scenario is off a little.

[RaetherEnt]

I disagree. Michael Lynch gave Robert Corr $615K and also made a committment of another 2.4 million for inventory. Meaning when production ramps up, the $2.4 million will pay for the production and warehousing of product that is waiting to be shipped. When distributors start placing orders, RUSH cannot THEN fire up the production lines and start making product. It has to be already made, stored, and ready to ship immediately. Somebody has to pay for that inventory until it is shipped, invoiced, and paid. That somebody is Michael Lynch. He didn't rob anybody.

He got 2 billion shares for $615K in cash AND a credit line of $2.4 million more. As part of the committment he made for the shares, he comes up with the credit line when it is needed.

In total, for his 2 billion shares, Michael Lynch is on the hook to Rush for $3,015,000. Again, he didn't rob anybody. More, he is exactly what was needed to move this company forward.