Dear Drat,
" Do you believe that the company plans on using the 4,444,444 shares to run the company over the next 24 months? Because that's what they say in the SB2a that they intend on doing. Do you believe that that will be enough money? They say in the SB2a it might not be."
The SB2 form seems to be a static document ( I think CH touched on this ) in that it is at that point in time, business does and will go on and conditions do change eg: MS had said the additional 25 million shares would be used for acquisitions and to date that has not been the case. Will it be enough to float them for 24 months, time will tell, but do keep in mind that does not include any potential earnings or any additional share issuance for goods received which has been done in the past. Also, the last deal ( for RT quotes, which are hella-kewl ) was done as a services swap and the Joey T deal was done with shares. The wire guys could explain alot better than I, if there are any "ramp up" costs going forward on that side of the bizz, there does not appear to be but I do not want to talk out of turn on that. At some point there will be a need to hire more staff, 5 fulltime and 1 part time won't cut it (when this was last visited I think the intention was to use consultants). What sales staff there are work on a commission basis. There will be costs associated with the back-up system, we will see in time how that deal is done. They have I think it is $1.5 million coming in thru additional selling of shares and that contract announced a few months back what was that for $1.5 million ( sorry am being lazy and don't feel like going to look). Soooooooo, yes it very well could be enough all things considered.,,Barbara |
