Replies to post #79096 on 8000 Incorporated (EIGH)

[loanranger]

"The company would have to sell restricted stock to someone, take the cash generated and use it to fund the development. Is that what they mean?"

That's what I thought they meant. The specific gibberish at issue is:
"As part of its investment strategy, 8000inc will provide through restricted stock the first traunch in the initial $1.5M working capital for this subsidiary project to begin its site development."
In this guy's language he could be saying that they are actually issuing restricted shares to somebody AS "the first traunch.......", etc.


But go easy on me...I was only trying to answer "where is the 1.5 million shares coming from?" The larger question of the reasonableness of announcing their intention to make a partial payment towards a $1.5m investment in a 1.2m sq ft construction project by issuing restricted shares while sitting on a $40m cash windfall the day after promising to buy back the majority of the float.....well, I don't think I would've tried to answer that question. But it doesn't seem too reasonable, now that I think about it.

:o)

[ozz112]

1.5 million probably won't even cover the permits for a project like that. Can you imagine the red tape involved for your own power plant. It sounds like several hundred million are needed at least for a project like that. This 1.5 million dollar share swap is simply an excuse to move shares around. They are begging for the SEC to get involved at this point. I'd say they have some guts putting out one outlandish PR after another, but when you are hiding in Barados, I guess they feel they are untouchable.