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Technology Stocks : ACII - AmeriChip International, Inc -- Ignore unavailable to you. Want to Upgrade?

To: rhoshariasha who wrote (1096)	1/31/2008 3:31:23 PM
From: Ted M	Respond to of 2396

Shane, I would guess that the value of the shares is irrelevant because the company doesn't pay money to have shares issued (other than underwriter and legal fees which are not dependant on the number of shares). What IS relevant is the number of shares issued--because each share issued reduces the pctg ownership by existing shareholders. I am not positive on the first statement though--maybe someone here can fill us in some more. tedm

To: rhoshariasha who wrote (1096)	1/31/2008 5:22:00 PM
From: BarclayDonaldson	Read Replies (1) \| Respond to of 2396

shane: They put a value on the shares at the time they are issued in order to determine number of shares. That value is usually some percentage BELOW the current market rate. For example, look at the last 10Q on how they figured out how many shares to give what was owed to David Howard. He was given 20M restricted shares at .0275 (I think). The Filing has the exact amount. This was done within a week of the R/S taking effect when the PPS was .07. Now you see why they R/S'd, they couldn't pay this debt because they had run out of shares. Obviously, the person accepting shares is taking a risk that they will still be worth their "value" when the restriciton period ends.