Replies to post #124537 on Wave Systems Corp. (fka WAVXQ)

[Snackman]

It does matter. But if you want to believe differently that is your right.

[awk]

orda: What is so frickin difficult to understand?

Wave became non-compliant with the NAS listing rules in April of 2006

Wave appealed and applied for a 180 day extension. An appeal may take anywhere from 4-8 weeks until a hearing takes place. That hearing took place last Wednesday, one week ago.

As part of the appeals process Wave has to provide an outline to the hearing committee how Wave would proceed to become compliant again with the NAS listing rules.

As has been said many times here NAS does not consider any forward looking events (revenue, announcements). So the only possibility is to agree to a reverse split if necessary. With the share holders having to authorize such an undertaking Wave "bought" an other few weeks (until at least July 24, 2006) on the NAS.

I don't think it is within our capacity to determine whether a NAS delisting would or would not influence our way of continuing business. What however came out clearly is that it would be difficult to raise further needed funds at market if we were delisted.

In any case, this discussion has become quit dry.

Have you ever tried to figure out what kind of revenue figure Wave is looking at in 2007...i.e. with fairly good upgrade numbers?

I am sure that if you thought a bit about these figures you'd come to the conclusion that a possible reverse split is quite a non-issue. They'll have to forward slit pretty soon anyway.

[UncleverName]

Orda, if you want institutional investors and you want financing at market rate, you want to be on the National. If you read the PRE 14A, it is much more problematic to pull a financing together on the Capital exchange. You could certainly get some kind of financing on the Capital exchange, but at the old game of 20 to 25% discounts and money men dumping the stock. And greater dilution than you would have otherwise.

My reading of this is that this plan had to be filed or Wave would be on that Capital market today. As it is, whether the plan is passed or not, Wave appears to have until July 24th on the National.

>>If they GET ENOUGH MONEY TO TAKE THEM TO BREAKEVEN, it doesn't matter what exchange they are on.

It may not matter as far as to the viablity of the company, but it does matter to me as a shareholder. I want the best strategy implemented, given the fix Wave is in, for the share price.

Management did give us the details - read the PRE 14A.

[xam 321]

Orda,

A plan matters because it was a requirement of the Nasdaq review board. Wave could not achieve compliance and had no time left. Their only option was to provide a plan that would assure compliance hence the reverse split option. Period.

Although I believe Wave has significant opportunities in the near future, there was no guarantee those opportunities would present themselves before delisting would occur. I take at face value management's list of reasons for not wanting a listing disruption. I have often asked them whether their financial status has not proved an impediment to closing deals. Apparently not to date, but you have to imagine any further erosion of status would not be helpful particularly at this juncture when many large enterprises are taking a closer look at implementing this important technology.

All that said, I also suspect Wave feels strongly enough regarding their success, that a reverse split provides some other incentives (consolidation of power, smaller float leading to quicker share price appreciation etc.) that they may actually perceive an upside benefit.

Although very knowledgeable about Wave and its market opportunities, the shareholders are not armed with enough concrete information to assess dispassionately the risks of a reverse split. We will not be able to rid ourselves of doubt, due in part to the large personal risks we have all parleyed, the length of time we have carried this risk and the fits and starts of the past performance, unless and until Wave shows us a breakeven quarter. SKS gave a sharp, professional presentation yesterday with solid performance criteria and a precise appraisal of the growing necessity for securing information and Wave's important role in that process. He also knew we were listening.

Brinkmanship is the name of the game as everything appears to be converging at a moment shortly upon us. The pressure is tremendous - hang in there my friends and best of luck to us all.

XAM

PS thanks to the many informed posters who consistantly carry the DD weight - Awk you are right about the fatigue.