I attended the meeting in Scottsdale yesterday, there were a hand full of stockholders and two hands full of employees. I was a few minutes late but don't think I missed any thing. The propose of the meeting was to vote on a reverse stock split to achieve a $4 per share price at sometime in the future and to issue 50,000 more shares. The 50,000 new shares would be added to the existing 25,000 for a total of 75,000 (as I understand it). There were not enough proxy votes to vote so Mr. Copeland asked for a continuance until more proxy votes are returned, it was seconded. There was a breif question and answer period.
Mr. Copeland down played the significants of a reverse split saying that it really didn't matter how many shares you have its the value that matters (paraphase). He defended the issue of an additional 50,000 shares bases on a few things: 1) The company is going to need additional capital to be successful i.e. expansion in pacific rim, operations, promoting the products... 2) Many of the current employees, including himself, gave up shares or options to settle the preferred shareholder problem months back (I don't have alot of info on that) and "to be perfectly frank I am going to resolve that problem" (something to that effect). By the way in picking up written info I grabbed a list of stockholders and Mr. Copeland owns just under 50,000 shares according to the information. He said he owns less than 1% of the company (25 mil x .01 = 250,000 shares ???).
Mr. Copeland answer questions about inventory issues and explained that one of the side reasons they are expnading to South America and Pac Rim is to sell inventory of older products that become outdated in this country.
I was impressed with there products and got to sit down and play the force feed back per4mer wheel, it is state of the art. The tech support guy is a game nerd and was explaining how people are able to race other users on the internet. He said the trend is growing and it is becoming very competitive according to him the force feed back unit is the best on the market and give a significant advantage. " As people become more aware of its capabilities they will want one. The sales guy said that things are going well they are negotiating with large retailers to distribute the product. I got the impression that they do need additional resources to promote the products better i.e. demo stations... big expense$$$.
According to Mr. Copeland SCTI is a very small player with the best product and there is no ware to go but up.
By the way I asked him about the merge press release and he said it was not true but did say that a merge would not be ruled out if the right deal came available...
hope this helps. Sorry it took so long - but I was not a paying member and could not respond - after seeing the desperation for information on the meeting I bit the bullet and coughed up the $125. |
