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livingelectro

04/20/11 9:23 AM

#59937 RE: Starlost #59930

Words from Matt Schissler on his blog “ - As mentioned in yesterday’s blog, we understand the fear of further dilution. Let me clearly define the next 12 months. Either we acquire to get to positive cash flow, or make no acquisitions, grow more measured, buckle down and reduce burn. It will not produce profits quickly, but we will get there. Either path leads us to the goal...
Three very strong acquisitions in the funnel which bring us the clear path to profitability, and any one of them gets us there. As mentioned before, we don’t need all three, but only one to get cash flow positive. CBAI has options, which is the most important leverage in any negotiation. As clearly executed in the last two years, a vote yes once again is a vote for growth”

What needs to be highlighted here is that CBAI has explicitly stated they either will buy another company that makes them profitable, or they won’t if they don’t they will cut burn and just grow more slowly. Either is a win win for shareholders and should be good news.