posted
Need your help in undertsanding the paragraph with the ? faces ?
Thanks
Your input is greatly welcomed, My good friend from the Wilshire Golden Mile told me about INSQ a while back, just trying to understand the paragraph below..
Thank you for your time
****** The conversion of GreenShift's stake can be expected to decrease INSEQ's common stock outstanding by about 3 billion shares ***
INSEQ Releases Shareholder Letter
October 11, 2005 10:22:04 (ET)
MOUNT ARLINGTON, N.J., Oct 11, 2005 (BUSINESS WIRE) -- INSEQ Corporation (INSQ, Trade) chairman, Kevin Kreisler, issued the following correspondence to its shareholders today:
Dear Shareholders:
A number of exciting developments have occurred since our last communication that we view as critical to our ongoing development and growth. These developments include the following:
-- The execution of an agreement to acquire Independent Metal Sales, Inc., which will bring INSEQ to an estimated $21 million in annualized revenue and $2.1 million in EBITDA;
-- The execution of a letter of intent to acquire a Specialty Metal Manufacturer ("SMM"), which is expected to add another $2 million in annualized revenue with better than 10% EBITDA;
-- The completion of INSEQ's acquisition of Separation and Recovery Technologies, Inc. ("SRT") which holds the rights to a new patented technology developed by Argonne National Laboratory under a contract with the U.S. Department of Energy that preferentially separates plastics from mixed plastic wastes;
-- The execution of manufacturing agreements with Ethanol Oil Recovery Systems, LLC, Mean Green BioFuels Corporation, Ovation Products Corporation, and Tornado Trash Corporation, each of which agreements call for the first refusal rights relative to INSEQ's manufacturing of equipment and appliances based on each of their respective patented and proprietary green technologies;
-- The execution of Strategic Alliances with Sterling Planet, Inc., and TerraPass, Inc., under which agreements INSEQ will sell RECs and TerraPasses through INSEQ's planned new secondary commodities exchange;
-- The execution of a Green Technology Prototyping and Manufacturing Agreement with GreenShift Industrial Design Corporation ("GIDC") through which INSEQ will manufacture and distribute GIDC's planned line of residential and commercial recycling and waste reduction appliances and equipment;
-- The execution of a sub-license agreement with GIDC for certain applications of Ovation Product Corporation's proprietary new water purification appliance, under which INSEQ plans to develop and sell appliances for the purification and reuse of waste kitchen and bath water, not including septic wastes, for a number of markets including the food services, hospitality, and residential markets; and,
-- The restructuring of our various debentures and the cancellation of about 350 million shares of INSEQ common stock and warrants exercisable into 300 million shares of INSEQ common stock at $0.001 per share.
INSEQ's business model is based on activities where the Company directly facilitates the more efficient use of natural resources. Its strategy includes the manufacturing and sale of equipment and appliances based on proprietary green technologies, the distribution of primary and secondary commodities, direct production as appropriate of selected metals, chemicals, plastics and fuels, and various forms of technology licensing.
INSEQ has recently executed an amendment to its Green Technology Prototyping and Manufacturing Agreement with GIDC to include a blanket sub-license to GIDC's package of existing and new green technologies, including GIDC's Tornado Generator(TM) and water purification technologies. This is an important development because INSEQ plans to directly use relevant technologies to accelerate returns on its investments in future acquisitions by reducing the targets' operating costs and increasing their sales. If the Company is successful, and it structures its acquisitions with this in mind, it should be able to acquire more companies, assets and earnings with less capital.
On the issue of the Company's capital structure, while we made positive strides during the third quarter with the elimination of about 650 million shares of common stock and warrants, our growth plans require us to seek out new opportunities to achieve similar results. We have accordingly cancelled certain financing agreements, restructured the planned financing for our pending acquisition of Independent Metal Sales, which is slated to close this quarter, and we expect to restructure GreenShift's 70% stake in INSEQ.
GreenShift holds a dilution protected 70% stake in INSEQ that currently amounts to about 3.0 billion shares of INSEQ common stock. GreenShift has agreed to cancel its dilution protections and convert the entirety of its common stock into a new class of preferred stock. This new preferred stock will have a fixed face value equal to 70% of INSEQ's intrinsic value on December 31, 2005. GreenShift's voting rights and dividend preference will remain fixed at 70% until conversion. The new class of preferred stock will be convertible into INSEQ common stock at the lesser of $0.01 per share or 80% of the market price at the time of conversion. The conversion of GreenShift's stake can be expected to decrease INSEQ's common stock outstanding by about 3 billion shares.
I am hopeful that these changes will collectively help to enhance the impact of our pending and targeted new acquisitions and other growth initiatives on our overall shareholder wealth.
We are pleased with INSEQ's progress and we are very enthusiastic about our prospects for growth. We are grateful for your continued support and involvement. I look forward to our next communication.
posted
Pens - wouldn't that indicate that they are pulling 3 Billion shares from the market? And also, are they doing this on 12/31, or is that the date they will determine the value of those shares. If that's the case, at what point in time will they reduce the float bt 3BB, if thats what this means. I think we're still ok with this one either way...your opinion?
-------------------- I'm not going to comment further, as I refuse to get into a battle of wits with an unarmed person....
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posted
Not sure, It went up today after the news, it had formed a cup so it looks good. Not sure about the 3 Bilion shares or what the current A/S is, but with all the acquisitions and decrreasing 3 Billion shres it must be good.
Anyone other with more lawyer or stock freak knowledge care to educate us all. This can be huge and we all can learn fro each other...
"can we all just get along" Rodney King
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