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Once the deal is completed, which it currently is not (closing is May 31), the ratio of inside to outside investment can be provided. In terms of share consolidation, it is a move that really only makes sense to do in concert with a significant corporate transaction. This private placement, as the release notes, is to ensure production of new digital handheld recorders -- which will be bundled with our new Play-All software -- and released to our dealers either late June or early July. This new product bundle, which is essentially a low-cost, high-margin digital dictation system, requires no "inside-the-box" PC expertise, giving it broad appeal. We expect that this product will enable us to expand distribution from more than 100 dealers to 1,000, creating broader market coverage and a significant installed base to which we can sell upgrades. It's our estimate that every $100,000 we can raise now will translate into nearly $500,000 in revenue through the coming months, so the leverage offered by this private placement could be substantial. |
