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upontheedge

06/06/09 9:21 AM

#153348 RE: TONY64 #153344

Maybe ESI is Jareds fall back position if EESO
blows up.
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enzymesarecool

06/06/09 9:48 AM

#153352 RE: TONY64 #153344

IMO, one of the most roubling things that Jaed released recently is that his preferreds are convertible into common shares at 1000 to 1.

That means that Jared (preferred owners) own 2 billion common shares.

What did they pay for those preferreds? By my best guess, nothng other than vending in the formulas which THEY chose to value at $50,000 each - was there an independent valuation of them on the way in - doubtful. You as shareholders decided to gift Jared half of the company for his formulas which are not patented nor are they truly special IMO.

Of course Jared needed to raise the AS. There were no shares for him to convert his preferred into if he did not. Will they be restricted when he converts. No one knows and restriction in pinkie land might be counted in hours rather than months.

So, Jared has not taken a salary to this point. No big deal, either he had lots of cash going in or he has sold some shares or taken out cash for some part of the formulas.

AND he knows he has 2 billion shares (or whatever amount of the preferreds are his that he can dump inot the market for cash. AT .006 that is $12 million dollars in his pocket (and out of longs pockets) - none of that cash goes to the company it all goes to him.

Was teh 3 billion AS increase for the good of the company when likey only 1 billion is for the company and 2 billion is for Jared and the other pref holder (who may hold 1 preferred share but may be there to make it look like Jared does not own them all.)

Think about it...in my opinion this increase if primarily is for Jared and not the company.
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MorningLightMountain

06/06/09 4:25 PM

#153481 RE: TONY64 #153344

thanks.......
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fringe_remnant

06/06/09 4:38 PM

#153491 RE: TONY64 #153344

EESI and ESI

I have seen this before. Run a shell stock like stink and make it look like a business, but don't let any of the assets near it. ESI might be the Asset Alter Ego here, protected.

fringe