DD:CALLED THE COMPANY: Pt. 2 The Business
As stated earlier, the company right now does not have much incoming revenue. The company was founded back in 1993 and has only had minor revenue. In November of last year they decided to go public and started selling shares on the OTC BB in order to raise money to implement the commercialization of their ideas. Dr. Shanks said that they had severe problems with their original agent in charge of shelling shares and have contracted with Pat Vitucci now instead. Of the 10 million outstanding shares, only 3.6 - 4 million are available to the float, the rest are held by insiders. But the 3.6 million are in the process of being sold NOW. There are only about 1 to 2 million sold so far. So they are in the process still of raising $ from their first offering. When this is complete, they will be hiring auditors and holding a company audit. Then they will file with the SEC to become fully reporting. This will probably take several months after the completion of the initial offering. Of course, the goal is eventually to get to the NASDAQ. They need this initial money to fund their work with SEVA and their continuing development. The more money they get out of the initial offering, the more they can accelerate their plans (make more hardware designs). They have no doubt about their market.
Dr. Shanks emphasized that they wanted long term share holders for share price stability. He stated that the stock had opened at around $5 and had been shorted by the MM's down to its present price range. He was surprised and disappointed by the brutal nature of the OTC. He was very helpful and quite convincing in his sincerity and honesty.
The vision they have for this technology is HUGE. He related to me an incident of tactics a MAJOR processor company had gone to in order to try and capture their technology. Clearly they have something very valuable. And clearly the big boys (Microsoft, Intel, Motorola, etc.) are all quite aware of it and recognize its value. I believe, although he did not say it, they even imagine that a form of their technology, could get incorporated into the PC processor someday! Even if not, the nature of these things is not less than they claim, a revolution in computational technology.
The value of this company is in their mathematical innovation and its incredible range of practical application! The actual software and hardware implementations of the math are not that complex. And they will all but sell themselves! If they can guard their patents, Log Point should have stellar long term performance.
End part 2
Mark Nispel |
