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TheBocx

08/08/09 11:29 PM

#21434 RE: Gold Seeker #21431

<How many investors are going to say no to keep him from doing some other foolish deal with someone else like Smithline?>

I do not know how many shareholders are suicidal... If the company is in fact raising money and that is why the proxy is required, then voting against it would make the financing impossible, which would result in (a) Smithline taking over and (b) the company being disbanded. At that point in time you can open the bottle of champagne, but I do not think that will happen.

On the other hand, if the proxy is voted and there is a significant round of financing coming up, then the uncertainty of what Smithline will do and the concern related to the lack of money would be removed. With money, the company can continue its plan in China, the vet RECAF, etc.

While there is the issue of dilution, the ability of getting out of the hole (and being in the 50% that did not perish as a consequence of the crisis) might offset it and we might see the price going up...

The long term investors who are hanging in there would finally see light at the end of the tunnel and therefore they would not only not sell their positions but they will also gladly vote in favor.