Frazdog, I have no problem helping you with information regarding private placements. Remember though, that I am not the official source of this information. Yes, I would call this a private placement. They are sold to accredited investors (investors with net worth of $1 million) and apparently Cyclone is also selling them to non-accredited investors. The transaction is usually made by the company's CFO and the private investor. There is some paper work involved. The SEC wants to make sure the investor is aware of any risk involved. The only negative I can think of for you would be that you can not sell the shares for 12 months (Rule 144 of the Securities Act). I have been told by those in the "know" that you can say you are an accredited investor and it probably will not be checked. There is no minimum or maximum number of shares in a private placement.
Companies sell restricted shares to pay bills and continue operations when they have no income. Some feel it is better than borrowing money and paying interest.
I would advise you to call the company and tell them that you are interested in the next private placement. IMHO, I think the next placement should be about $.05 a share.
I hope I have answered some of your questions; if not, ask again and I will be happy to try to explain it further.
During the six months ending June 30, 2008, the company issued 518,572 shares of restricted stock, valued at $71,650 for services. For the six months ending June 30, 2008, the company sold 7,979,523 shares of restricted common stock for $424,274 and converted $20,000 of debt and payables for 333,329 of restricted common stock.
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