Replies to post #5129 on Adia Nutrition, Inc. (ADIA)

[Jason Coombs]

One of the first things a private investor wants to know is WHERE IS MY EXIT???

A toxic lender expects an exit, with a profit, regardless of whether the company is creating and protecting value for anyone (else).

One of the things your type of investor wants to know is WHERE IS THE TOXIC LIQUIDATION OPPORTUNITY?

That is NOT what is being offered here, period. Move along if that's what you think "private investors" want.

Creating value is one thing but without a viable exit strategy, its virtually meaningless..

Creating value is the ONLY THING. Your concept of "viable exit strategy" is mistaken and almost prehistoric. Today, quality private companies that have created value experience just as much liquidity as any public company listed on an exchange. This is causing real concern, as you may be aware, among exchange operators and SEC commissioners. Everyone now wants to remain private, and private investors aren't looking to the public markets as their only "viable exit strategy."

Being a public company, especially for a POS like ADIA, is probably one very important factor private investors with any brains, will want to have available to them

You presume that the only people who will invest in ADIA are people who look forward to being able to dump their shares onto unsuspecting victims who are willing to pay a premium for shares of a company that has not created any value. That's just not true.

Also, you are asserting that any investor who DOESN'T look forward to dumping their shares onto unsuspecting victims at a premium doesn't have any brains.

Are you arguing that Bernie Sanders is right, that the only business model of Wall Street is fraud?

[Jason Coombs]

In addition to the increased importance and liquidity of the private market over the last 20 years, there are new ways for companies to be "public" today and more options for being "public" coming soon ... not the least of which is Title III Crowdfunding under the JOBS Act, which might not require audited financial statements (we'll know soon, the final SEC Rules are coming later this month). For more on this topic, see:

http://www.crowdfundinsider.com/2015/10/75571-4th-annual-global-alternative-funding-forum-to-kick-off-with-david-weild-venture-exchanges/

The question for ADIA at this point is whether, and if yes then how, to prepare audited financial statements that are reasonably-accurate and that don't waste hundreds of thousands of dollars of new investor capital at a time when the investor capital MUST go into value creation not into politics and regulatory-compliance.

There may be inherent leeway in preparing and auditing financial statements at lower cost and with room for estimating unknowns under Regulation A+ which wouldn't be available under the 1934 Exchange Act as a fully-reporting registered issuer. If ADIA must estimate its financial condition given unknowns from the past, I see no reason that such estimated and honestly-audited financial statements would constitute fraud of any kind yet I don't see any way for estimated financial statements to be used legally in a new registration filing with the SEC.

Whether a Regulation A+ Offering is going to be conducted next year or whether a different option is going to be used instead to raise capital, the JOBS Act Rules obviously open the door to the full-scale relaunch.