To the thread: I wrote Mr. Clancy with a number of questions which he is referring to his technical department. However, he did immediately answer a couple of questions, one regarding the SEC filing and another question as to why the oil companies were not beating down their door.
His edited response is below and I will post the other answers to my questions when I receive them. He suggested that I feel free to post his reply, and IMO, it is always better to have answers directly from the horse's mouth rather than from its occasional riders. Thread participants will be please to know that insiders were not in fact selling shares but merely registering unregistered shares.
>>Dear Andrew:
First, let me apologize for not having provided the answers to your several questions as we have been in the process of moving AquaFuel into a new 10,000 square-foot building.
I have provided your e-mail to my AquaFuel staff to ensure the most accurate answers which we are at liberty to provide.
I intend to answer the remainder of the questions directly myself. Let me now address this one question relating to the registration of shares by the three officers and directors.
1. There is absolutely no plan whatsoever for Leon, Michael or Mark to sell their shares. Period. No semantical games or other garbage. We believe the stock has a long way to go and would be, frankly, insane to sell at these low prices.
2. All of our stock in "unregistered" which means that we not only can't sell our shares, we can't use them as collateral for any purpose. The registration of the shares and that is all the SB-2 is, allows us to make use of our unsold securities.
3. The SB-2 is not an offer to sell the shares. This is a registration format. In order for "insiders" to sell their shares, we will be required to file a Form 4, to wait 30 days AFTER providing notification to the world before we could conclude any transaction. It might be helpful if you put this question to your own securities attorneys.
4. Please read the SB-2 carefully as the three officers are registering only 500,000 shares each or a total of 1,500,000 and not 4.4 million. The requirements of the Form SB-2 force us to include our names in such a manner that it could be easily misunderstood. Sadly, there is no alternative registration format available.
We started with 5,000 square feet, three employees and one license agreement exactly one year ago November 3rd. We now have six technologies under license, have made two acquisitions, have taken our company public at trading prices significantly higher than our private investors purchase price. We now have 50,000 square feet at our main facility with another 10,000 square feet in AquaFuel's new home and we now employ over fifty people. Oh yes, we also have a BORS field sales and engineering office located in Claremore Oklahoma. I can go on and on because we feel, in all sincere humility, that we've had one heck of a first year. All of our securities have been sold at prices ranging from $.65 to $1.25 and we've never traded at or below these prices since we activated our stock in June. We have ten market makers and VOLUNTARILY made ourselves a fully-reporting (i.e., 10Qs and 10Ks) company because we felt our investors were entitled to such aggresive disclosure.
The compensation paid to those of us who have made this possible for several hundred shareholders and, at last count, six inventors, various acquisition principals and a host of vendors is $5,000 each per month. We have no company cars, expense accounts or other garbage means of taking advantage of our positions. Anyone who believe we are overpaid is simply naive and probably has no business investing in securities.
While we can appreciate that the SB-2 is easily misunderstood, we are fully satisfied that we have been excellent stewards of the dollars and responsibilities to which we have been entrusted.
This brings up one other point while we are on the subject. The reason the oil companies have not beat down our door is because, frankly, we refuse to "tout" or otherwise hype AquaFuel or any other technology. We will not release flashy promises in the form of press releases but rather we will publish reliable, credible scientific data. If the street and other energy participants won't take the time to read, we will not alter our policies. We believe in the long term and are not concerned with the momentary fluctuations of a small-cap stock.
We didn't need anyone to get where we are and we don't need anyone to give our shareholders appreciation in their stock value. We will grow AquaFuel as we will all our technologies at a proper pace and despite the constant request for flashy headlines, we will maintain our consistent, "facts only" approach.
Let me close by again categorically stating that neither Leon, Michael or myself has any intention of selling our shares.
Mark Clancy
co-founder
Vice President
Director
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