From: "RoundMot" <roundmot@c...>
Date: Tue May 25, 2004 1:47 pm
Subject: This is long as usual but worth it, I hope...
The short story is that I am prepared to state that I believe that as
of 4/1/04 the:
Authorized Shares = 10,005,000,000
Outstanding Shares = 1,248,000,000
Float = 1,243,000,000
Market Capitalization = $2,870,000,000
Here is my reaoning if you are interested. If you can wade through it
I would be interested in any responses, positive or negative. TIA
On 10/8/02, CTKT announced that they had secured a license with
Motorola Inc. to produce and use Carbon Nanotube Triode (CNT)
technology. (Source: BUSINESS WIRE)
According to the PR Cetek had pursued a significant R&D (research and
development) effort over the previous five years to produce a ceramic
substrate that was flat, smooth and of large surface area, and with
specific mechanical and electrical characteristics. Simultaneously,
Motorola carried out a significant R&D effort to develop CNT (Carbon
Nanotube Triode) technology (using CTKH's substrates) and demonstrated
that optimum CNT performance demanded ceramic substrate produced by
Cetek. The combination of the two proprietary technologies and
processes produced a high quality and inexpensive flat panel display
product. As of the PR date, all required research and development on
that part of the project had been successfully completed. Prototype
displays had been produced at Motorola's Phoenix facility. As a direct
result, Fayiz announced that the company was seeking funding to
establish a facility in the United States. And through affiliation,
partnering and strategic alliance, two additional production
facilities in the Far East were to be established.
At that time, Fayiz, stated, "This agreement has been a long time in
coming to fruition, and we are extremely pleased to have achieved this
major milestone for Cetek. We expect to move very quickly, with regard
to the production facilities, to take full advantage of the massive
worldwide market. This joint agreement with Motorola should lead to an
enormous rate of growth of CNT production in the coming years."
"In a related announcement," Hilal announced that the company had
retained Harry Zhang, head of CVP (China Venture Partners) of
Flushing, N.Y., as advisor and consultant. Obviously, the purpose of
the venture partners was to open the two production facilities in the
Far East.
October 14, 2002 Cetek, in an article by Michael Pastore, entitled
"Motorola Sign Pact for Display Technology," Fayiz told
Nanoelectronics Planet that Cetek would be manufacturing displays,
then selling them to other electronics companies, who would in turn
market them to consumers under various brand names.
In anticipation of needing even more funds down the line to accomplish
all that their goals, a week later, on 10/16/02, Cetek announced that
the company's board of directors had approved a stock repurchase
program. This program, which was to begin the next day would allow for
up to 500 million shares to be bought over an unspecified time period.
This would have a three-fold affect. First, the mere announcement
would strengthen the pps. The actual buyback would strenthen it even
more, and thirdly, the company would then be able to sell more shares
at the higher pps.
As further preparation to meet the need, on 12/11/2002, CTKH got
authorization to issue 2 billion shares of Class A Common Stock with
voting rights, 1 billion shares of Class B Common Stock with NO voting
right, and 5 million shares of Series A Preferred Stock with dividend
rights equal to the dividends due to Common shares. And in
anticipation of selling all of the shares, and thereby possibly being
out voted in a business meeting, the Fayiz made sure that, "Each
holder of Series A Preferred Stock shall be entitleld to six hundred
twenty five (625) votes for each share of Series A Preferred Stock
held at the record date for the determination of stockholders entitled
to vote..." So now we know how Fayiz can pass anything that he wants,
anytime he wants. LOL (My source is the actual document called a
"Certificate of Amendment" date stamped by the Delaware Secretary of
State on 12/19/2002. I have a copy available for any who desire it.)
Then for reasons unknown, the venture capital deal and the MOT deal
both fell through.
On 12-23-02, the company announced a 150 to 1 reverse split that
affected ONLY common stock. (Source: Business Wire news release,
"Cetek Technologies Board Approves 500 Million Share Stock Repurchase
Program.") What do you want to bet that Fayiz, et al, were holding a
total of 5 million shares of Series A Preferred Stock by that time
(with 625 votes each compared to only 1 vote each for us commoners)?
2 billion Class A Common shares reduced by 150 to 1 r/s would
leave........................... 13,333,334 shares.
1 billion Class B Common shares reduced by 150 to 1 r/s would
leave........................... 6,666,667 shares.
5 million shares of Series A Preferred Stock not reduced at all by the
150 to 1 r/s would leave 5,000,000 shares.
That means that after the r/s there was a total
of............................................ 25,000,000 shares
outstanding.
According to the 12-23-02 news release just cited, the Outstanding
Shares were reduced to less than 25 million shares by the r/s. So I
think that it is safe to assume that at the time of the r/s the Class
A authorization had been maxxed out and the Class B authorization was
nearly maxxed out.
Sometime in early 2003, prior to 6/10/03, exact date unknown, the
company got authorization to issue an additional 2 billion shares of
Common Stock. What do you want to bet that it was all Class A stock?
On April 5,2003, Fayiz issued a PR in which he stated that "A
substantial effort has been expended to raise the capital needed for
setting up the prototype facility. Much positive feedback, many
meetings, and in depth discussions with potential funding sources is
in progress. Raising funds is a very complex activity and the level of
complexity determines the timeline. I welcome all input and
contributions in this regard. Notwithstanding this effort, the
management is taking additional steps to move this project forward
such as discussing the possibilities of making some prototypes in a
University laboratory."
Presumably, one method of raising funds was through the sale of Common
Stock. On 8/20/03 at the shareholders' meeting Fayiz announced that
there were less than 500 million shares outstanding (Source: wm0767's
RB post 102) So the company had sold approximately 475,000,000 shares
of common stock between January and August of 2003.
It was at that meeting that Fayiz reportedly let it be known that the
company needed approximately $2,000,000, to meet their production
goals for the year. (Source:RB poster "magic1usa" Post 4247, on 05 Dec
2003)
By 11/11/03, according to PinkSheets.com, there were 740,000,000
shares Outstanding.
The pps at that time was hovering between .0002 - .0003, as I recall.
Therefore, at that rate, the company only raised somewhere between
$48,000 and $72,000 from the sale of their stock between August and
November, 2003.
But then the run of December 2003 started. It was then, on 12/19/2003,
that Fayiz jumped on the opportunity to profit from the run and he
filed a new Certificate of Amendment with the Delaware Secretary of
State, which increased the Authorize Shares to 9 billion shares of
Class A Common Stock with voting rights, 1 billion shares of Class B
Common Stock with NO voting right, and 5 million shares of Series A
Preferred Stock with dividend rights equal to the dividends due to
Common shares. BUT, are you ready for this, "Each holder of Series A
Preferred Stock shall be entitleld to two thousand (2000) votes for
each share of Series A Preferred Stock held at the record date for the
determination of stockholders entitled to vote..." LOL. That certainly
answers my question about how they could pass thing without notifying
us. ROTFL at us.
About a month ago, Jim Stock dropped someone on the RB board the hint
that the O/S was, "considerably above the 740 million quoted by
PinkSheets.com.
My own estimates were that by November 2003 the company needed to
raise the remainder of the $2,000,000. And at an average price in
December and January of around .004, I figured that they would have to
sell around 500,000,000 shares.
That brings us up to yesterday, when robotlol posted his www.knobias.com statement that the Outstanding Shares was
1,248,000,000 as of 4/4/04.
(Source: Company Mgmt).
Well, if you add my 500,000,000 estimate to the 740,000,000 shares
from PinkSheets.com's 11/11/03 statement, you get 1.240,000,000 share.
Now only 5,000,000 shares of that are the Series A Preferred Stock
held by the insiders. That would mean that the float as of 4/1/04 was
1,243,000,000 share.
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