Replies to post #70944 on Flexpower Inc. (FLXP)

[Adventures In Money]

Do you really think they didn't speak during dinner as well? When doing business with the Chinese, the getting-to-know-you part is just as, if not more, important.

The Executive Vice Mayor, the honorable Mr. Wang Yong and Mr. Winters spent a very productive 45 minutes discussing our common business interests before dinner.

[ratso1]

Good questions, Rig.

Here's something else I don't understand...

In the PR of 6/25 on the Check 21 deal, we were told these details as to the transaction:

"The stock issued will be placed in an escrow account, and delivered in stages as the business achieves a number of business milestones. This will see the issued share capital rise from 6.1 billion to nearly 8 billion shares. It is important to note that because this investment is in restricted stock, there will be no immediate impact on the current public float of Esprit stock, and will allow the Esprit to to preserve liquid assets to commit to expanding the sales and marketing efforts as well as operational capabilities of the AEFM ( Advanced Electronic Funds Management) and other divisions of the Company. The total commitment of restricted stock is based on anticipated development costs that will be incurred as the new subsidiary scales up operations on its way to becoming cash flow positive."

Yet, in the Q207 filing, we find on page 4,

"Cash provided from financing activities $889,974"

Also, on page 6,

"Purchased 100% of CHECK 21 CHINA on June 29th 2007 for a value of $898,894 financed through a stock issue of 1,787,787,990 shares of Esprit Financial Group (EFGO)."

So, it doesn't appear that the purchase of Check 21 was done with escrowed/restricted stock at all. Check 21 was bought in one fell swoop with a cash outlay of $898,894. Cash obtained from issued shares during the quarter; i.e., dilution.

So, what happened to the restricted stock, placed in an escrow account and issued in stages as the business achieved milestones?

No, that isn't what happened at all, was it?

What they did was, hardly 4 days after the ink dried on the PR announcing the measured-over-time-and-progress acquisition of Check21, they plucked $898K out of the company coffers and bought Check21 for CASH.