Pluvia says: We do not consider the sales to CTI International as actual sales but an attempt to make transactions appear as sales. We believe COII managememt misled the public suggesting the transactions with CTI International are actually sales.
COII says in their prospectus dated June, 2000:
INTERNATIONAL STRATEGY. On the international front, we will continue to foster and nurture relationships in Mexico, Central and South and Latin America, the Middle East, the Peoples' Republic of China, and India to prepare for the future deployment of our Breast Imaging System. In connection therewith, we entered into two letter Agreements on October 28, 1999 with Computerized Thermal Imaging
International, Inc. ("CTII"), whereby CTII received the exclusive right to represent the expansion of our business into Central and South America, prepare and implement a marketing strategy for deployment of our Breast Imaging System in those areas of the world, have the right of first refusal on our Health Card manufacturing worldwide, and right to sell a minimum of 100 of our Breast Imaging Systems over a two-year period. The Agreements provide that we grant to CTII, as compensation, options to purchase up to 5 million shares of our common stock in 50,000 share increments based on their deployment of our Breast Imaging
System in the specified territories. Each option to purchase 50,000 shares of our common stock at a strike price equal to a 15 percent discount to the bid price on the effective date of the grant will be issued for each system deployed. Options expire two years from the date of grant. As of the date hereof, no options have been granted under the Agreements and none of our Breast Imaging Systems have been deployed by CTII.
ALR says to Bruce:
1. Is this current enough for you?
2. Do you think CTII is an arms-length customer?
3. Do you think it is a normal business practice to grant stock options to customers in order to get them buy your products????
DON'T MESS WITH PLUVIA ON THIS ONE. THEY ARE DEAD NUTS ON. THIS "SALE" IS A SHAM! |
