LBAS - Location Based Technologies Message Board

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Technology Stocks : LBAS - Location Based Technologies

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To: pocketthis who wrote (144)	5/1/2010 3:15:11 PM
From: notimetowaste2	Read Replies (1) of 152

I really don't mean this in disrespect because I don't expect the average investor to understand this, but you and others on this board don't seem to have any experience in Reg D private placement financing. You are flying blind on your decisions, so I don't know why you are attacking me instead of trying to understand. I would think you would be driven to get a better understanding so you can make better decisions. Your comments on restricted shares indicate to me that you don't know how this works. Reg D private placement financing is very straight forward with clearly set market guidelines. Restricted shares are sold in a private transaction at a discount to the market; moreover, warrants are always issue as part of the deal. The discount on shares is typically between 10% to 50% depending on the maturity of the company, and the number of warrants (warrant coverage) is usually between 25% to 100% of the number of restricted shares. The terms in the LBAS SPA were 12% discount and 25% warrant coverage. These are terms you would only see for a mature stable company with significant revenues on a major exchange, not LBAS. It's just a fact supported by the link I posted. Yes, A FACT. The report I posted just discusses the stock discount. It doesn't discuss the the warrants but it indicates that warrants will also be issued. I can't do all your due diligence work for you. I don't know why you need to assume I am wrong. Nothing you will read will refute what I am saying. As I said before, the facts clearly indicate that the terms of the LBAS SPA seem completely unreal given the companies position. This can only lead me to believe that it's a sham create a perception of value and buy time. The fact that no steps were taken to execute it supports this view. This alone should be be a big red flag. You can try and learn or just close your eyes and believe what you want, but don't be surprised when your decisions lead you to big loses.

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