Check this out, an interesting post I found that believe it or not makes some sense....Any Comments??
I've been following this one for a while. Here is my opinion:
I am an accountant, so I look at NUMBERS. Just the numbers. And the facts,
too.
JNNE enters into a contract with ANFS, for stock. ANFS issues JNNE
1,000,000 shares of preferred stock. ANFS for one reason or another feels
that JNNE has not fufilled it obligation of the sattelite deal so ANFS
refuses to let the preferred stock convert into common stock. To the best
of my knowledge, ANFS has 7,500,000 shares outstanding and about 500,000 in
the float. Joe Naughton tries to be friendly about the ordeal and ANFS
wants nothing to do with it. JNNE ultimately has no choice but to file
suit. JNNE sues for the stock ($5 million) and $55 million in punitive
damages. (Remember, $5 million would be equal to 1,000,000 shares because
ANFS WAS TRADING AT $5 PER SHARE) Now, $5 million may be almost their whole
company... Okay- ANFS files a cross suit. JNNE's lawyer says that he'll
take it on consignment (good sign).
A couple of weeks ago I called Pat Rost and he told me that the company had
$400,000 cash, no other assets. He also said that there was 55,000,000
shares outstanding. Why through all the talk on SI nobody bothered to ask
about what assets JNNE had is beyond me. Now two weeks later, there are
62,000,000 shares outstanding, which (at .06) is an additional $400,000
(more actually). That brings JNNE cash account to $800,000.
ANFS realizes that it is screwed, so settlement talks begin.
Now, ANFS has restructured to a mysterious third pary. There is
realistically only two reasons a company would do this:
1. To get out of the settlement.
2. We are seeing the terms of the settlement announced.
I am fairly confident with my schooling in business law that restructing
like this would not free ANFS from its past liability to JNNE. Also, I can
see no reason why a third party in their right mind would finance a $14.6
million to a company, when they could BUYOUT the company for the outstnding
shares (7,500,000). Companies in this type of position would be wiser to
get insurance, rather to take on a debt twice the size of their shares...
That leaves option 2. It never said who the tird party was. AND, TO MAKE
THIS ALL WORTHWHILE, THE WHOLE VENTURE COULD BE COMPLETED WITH
$500,000.
It never said how much these $15 million in notes were issued for- it could
have been for $1!!!! So- JNNE is suing a company for 8 times what it is
worth, it seems to me that a settlement could very well be JNNE receiving
15,000,000 shares and making a reverse split 20,000 to 1. Then they would
take the company private. All those who don't have 20,000 shares (i.e. the
"float") would have to be bought out by JNNE at a price of .97 per share
times 500,000 in the float is equal to $480,000. Funny, isn't it how we
hear JNNE is preparing for a "new venture" and they needed to raise about
$400,000? The PR for ANFS also said that the sale took place in January.
This would be perfect if JNNE made an offer, got the money (i.e. issued the
other 7,000,000 shares) and just waited for stockholder approval from ANFS,
which came in the PR. This plan has been n place for a while, this is not
a "new development".
IN SHORT, I THINK THAT JNNE IS GOING TO ANNOUNCE THAT THEY ARE GOING
TO
BE
THE NEW OWNERS OF ANFS! |
