Replies to post #35801 on RushNet Inc (RSHN)

[alopex63]

So AR would not be part of any new security in that scenario, right? Majority owned by whatever was represented by the new security, but traded independently?

[MaryKateAustin]

marayatano... I am all for Consolidation...IMO that would increase the value of RSHN, or whatever the consolidated company would trade under... I am holding, and buying more as I have extra cash....and also will be watching the chart for dilution....I like what CORR has done here, this was a very smart way to add these two assets to the company....A reverse merger of all company assets into another company trading on a higher exchange would complete the plan... JMO

restricted shares to be held in escrow, this is like putting a mortgage on Corr's company... the bankers get a controlling interest in the company if he doesn't pay back the borrowed money.....JMO


Aug 3, 2007 5:28:00 PM
Copyright Business Wire 2007
BLUE ISLAND, Ill.--(BUSINESS WIRE)--

RushNet, Inc. (RSHN) has increased its authorized shares this week by 6 Billion in order to complete its purchase of Garden Beverage as well as the upcoming joint venture investment in Amicalola Water Co. Both will require a substantial pledge of RushNet, Inc. securities as part of the company's participation. The additional authorized shares encompass a large amount of restricted shares to be held in escrow, pending the completion of both investments.

Robert Corr, President of RushNet, stated: "Unfortunately, the weak share price has left us no alternative but to increase our total authorized shares to 12 Billion. It had been our expectation that the share price would have been higher at this point and thereby kept the approaching share issuance to a smaller amount. But due to the Agreement we have in place with Garden, and our proposed investment agreement upcoming in Amicalola, we were forced to issue substantially more shares than planned to maintain the dollar equivalence of the pledged securities."

Robert Corr went on further to state: "While it may appear out of line to some, this increase in authorized shares is vital for us to implement our strategic development plan. The additional bottling capacity, and an optimum water source for e-water(R) at Amicalola, as well as strengthening our Midwest regional distribution impact through Garden, will foster long term growth and value to both the company and its investors."

[madtony]

How many trucks does Garden have again??