Replies to post #41424 on First American Scientific Corp. (fka FASC)

[TRCPA]

The questions relative to #4 are as follows.

1) Assuming the split proceeds as planned (note significant legal obstacles to plan in prior post), you would have about 100 million new shares to work with (reduction of current outstanding to 100 million and 200 million remaining authorized.

2) So 100 million shares would be available for use for new FASC-owned biomass businesses, other new sales projects (would assume similar to those already in place), and to pay for a new CEO (with Brian moving to COB).

The next questions would be.....what are the costs of the above, and what are the value of the FASC shares to pay for these costs?

Let's start with funding....and value able to be obtained for sale of FASC shares.

Reducing the number of outstanding shares by half should yield an initial doubling of current market value of existing shares....which would mean an initial valuation of shares in the range of 2-4 cents. Let's settle on the middle point for now.....3 cents/share. Then you have the "buzz" factor....i.e, the increase in share value from the "buzz" of the possibilities of new projects and CEO. Perhaps that moves us up to, say 5 cents/share, initially.

Then consider the offsetting effect of this new dilution, as shares are now issued again. Let's. assume there are holding periods on these new shares of at least a year. This would mitigate the resulting loss in share value to some degree, so let's say the first round of new shares are issued at 4 cents/share.

[Net-Man]

TRCPA - Good points. Something to consider though, the larger sums of monies due the insiders are in the forms of loans, which become worthless if the company goes belly up. Half versus nothing seems more than fair considering the $16 million invested to date. Considering the current pps, the options are worthless at this point. Not much strength to negotiate from.

So without immediate sales in the pipeline, what I am suggesting resolves many of the balance sheet problems and provides cash to extend FASC's business both in machine sales as well as a new line of business that could have a more steady revenue stream.

fwiw,

Net-Man