Replies to post #16274 on Rim Semiconductor Company (fka RSMI)

[34Simmons]

jjz34..I recall many times, when, as a managing partner of a various large real estate development project yet to be built, offers to be the first major tenant in a multi tenant spec office building project were tendered by the proposed Corporation or its broker but were rejected by us for a variety of reasons ranging from [1]rents being offered were to low,[2] terms of occupancy were unfavorable to the developer and [3] a variety of other reasons.

It is always painful to reject any reasonable offer to fund your operation BUT if the creator/developer strongly believes in his market awareness and his intellegence he has little choice but to wait for the perfect fit as the lead lender / customer will float to the top when the time is right.

Whether we each believe Brad or not is our individual choice but while we wait for money / customers / s/p appreciation and high-fives by most, I trust this man to know his industry and where he wants RIM to be positioned.

None of us have the advantage to know all that he knows and none of us will ever walk in his steps, make the difficult decisions he is charged with making or steer his vision to the bright future for all of us.

He comes from a fine family stock with plenty of pride. He has beautiful young boys and wife and also a very intelligent older brother all present to meet [but not hustle] us at the SIL viewing in Portland.

His family, who knows him the best, certainly trust his vision and the community Brad and RIM moved to seems to be the center of our industry.

For me it would be far far worse to realize that the entire world knows our Embarq specs and still they won't buy than to sit patiently now and have all the cards covered waiting for the whale to plop down the chips at our table and push the bid. We are playing table stakes poker and there is no second chance to launch Embarq.

All the bistanders watching his moves are only that!

Brad is the player not us!

[427Cobra]

jjz34: The funding question is a hard one to put a finger on. I will say however that the answers seem to be consistent. Here is what I have heard over the last year.

VC companies or equipment mfgs., etc. can invest in companies who also have great ideas, but already have a product on the market, so they reduce their risk greatly on the little money they are willing to invest at this time by putting it into those companies.

Teleco's don't invest in companies like NV.

RIM has had many offers for money, but everyone wants control, and are not at all concerned with the shareholders getting screwed. Most of the people with money, know that the majority of the OTBB companies that need money can be bought for pennies on the dollar if they are just patient.

The Mercatus deal is a large amount for the final companies in the mix. They all get funding in one package. It is a new structure, so there is no standard paperwork, and everything has to be created new. All of the attorneys that get paid hourly are not necessarily in a hurry, and all documents have to be scrutinized in depth by all attorneys involved. Mercatus is still spending their own money, and pursuing this deal vigorously, and still intend on bringing it to fruition. This deal won't work for U.S. Banks because they can't count the shares in escrow on their balance sheet as an asset, but the European banks can.

They are pursuing a number of different financing options, and continue to look for more funding sources, until the ones necessary to succeed are completed.

Ray and Brad are very committed to keeping shareholder value from being decimated by funding deals.

That is about as much as I know, and who knows for sure if that really represents an accurate picture. I think it is at least somewhat accurate.