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Microcap & Penny Stocks : PLNI - Game Over -- Ignore unavailable to you. Want to Upgrade?

To: Jeffrey S. Mitchell who wrote (5253)	7/4/2006 9:53:34 PM
From: VultureBuyer	Read Replies (2) \| Respond to of 12518

It's hard to tell what pertains to SEMCO, what pertains to Pro-Mold, and what pertains to general operations and obligations, so I'll do my best to explain. I attribute events leading up to December 2005 as preparation for the SEMCO acquisition, so to the extent I atrribute factors unjustly to them and not Pro-Mold I apologize. It's hard to track the money flow with such patchwork reporting. 671_FR12.pdf As of the end of 2005, The Company is settling the debt with the Bank of Barnesville. It appears the bank will have to take stock in lieu of about $1.5 million of the bank loan principle. As near as I can tell the money was funneled through LexReal LLC, controlled by JT. The remaining half million will be discharged some time in 2006. By 3/31/2006, The Company recognized debt forgiveness with Dennis Joslin Company LLC. This LLC lost $65,303 in debt forgiveness to PLNI. This may be more Pro-Mold related. Between 2004 and 2005 the debt balance was reduced from $325,000 to $0 (671_FR9.pdf). I'm guessing some of that balance was taken in stock shares. By 3/31/2006, The Company renegotiated its debt with Export Finance Network and reduced the principle balance by $1.4 million. Probably another Pro-Mold entry (also in 671_FR9.pdf). PLNI is also on the hook to John P. Murphy, previous Pro-Mold owner, for $1 million in cash over the next five years. It's clear from 671_FR9.pdf, Page 15, that LexReal LLC, owned principally by JT, is providing the cash necessary for the acquisitions. According to Page 18, the 1 million in preferred, convertible to 7.3 billion in common stock (and super voting), is going to LexReal LLC. Page 19, the SEMCO purchase is to paid off mostly from salaries, benefits, and cash payments. It's my understanding of the P&L and cash flow pro formas that PLNI is running a cash flow negative. As of 3/31/06 cash, bank overdraft, payables, and receivables are about matched, but the current portion of note payables have no offset. Management discussion gives PLNI the credit, but most of the activity is SEMCO accretion. The only source for available cash is LexReal, and I can't tell from the financials if the LLC has any more cash to hand over. I'm sure members of the Bulls Board is going to go ballistic over this post, but I'm an investor, not a cheerleader. Shame would be on me for not interpreting published financials and managing my portfolio accordingly. My concern is for rescission. A civil suit can be brought for remedy via compelled performance, damages, or rescission (cancelling the original deal/contract). If SEMCO principals decide they aren't getting paid the cash they are promised, the logical course would be to sue for rescission. Pro-Mold could do the same if their compensation has been devalued through dilution and/or debt renegotiation, or the scheduled payments are not paid. This isn't speculation, it's my best interpretation of the events already laid out in the recent financial statements on PinkSheets.com