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quote:

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Originally posted by GlassCrasher:
This company looks financially pretty good according to their latest 10-Q. Current Assets = 2.5 million
Current liabilities = 1.7 million

They currently have almost 1 million in Cash. Balance sheet looks pretty good.

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Better read it again!!! This little pinky bleeding cash like a throat-cut pig!!!
For the first half/year,about $270k profit, lost $1.7 million.
Lost .091 (9.1 cents) per share.
Read this again:

EXECUTE SPORTS, INC.


51,773,334 SHARES OF COMMON STOCK


This prospectus relates to the resale by the selling stockholders of up to 51,773,334 shares of our common stock. We will not receive any proceeds from the resale of shares of our common stock.


The total number of shares sold herewith includes the following shares to be issued to Dutchess Private Equities Fund, LP and Dutchess Private Equities Fund II, LP (collectively, "Dutchess"): (i) up to 12,666,667 shares issuable upon conversion of convertible debentures, (ii) 3,166,667 shares issuable upon exercise of warrants, and (iii) up to 35,000,000 shares of common stock issuable to Dutchess pursuant to a "put right" under an Investment Agreement, also referred to as an Equity Line of Credit. In addition, it includes 940,000 shares to be registered on behalf of other selling security holders. The shares of common stock in this offering being sold have been converted from debt in the form of secured promissory notes to equity and therefore we will not receive any proceeds from this offering.


We will, however, receive proceeds from the sale of the 35,000,000 shares of common stock under the Equity Line of Credit with Dutchess and the cash exercise, if any, of warrants to purchase an aggregate of 51,773,334 shares of common stock. All costs associated with this registration will be borne by us.


A "put right" permits us to require Dutchess to buy shares of our common stock pursuant to the terms of the Equity Line of Credit. That Equity Line of Credit permits us to "put" up to an aggregate of $10,000,000 in shares of our common stock to Dutchess. Dutchess will pay us 93% of the lowest closing Best Bid price (or highest posted bid price) of our common stock during the five trading day period immediately following the date of our notice to them of our election to put shares pursuant to the Equity Line of Credit.


No underwriter or person has been engaged to facilitate the sale of shares of common stock in this offering.


Our common stock is quoted on the Over-The-Counter Bulletin Board under the symbol "EXCS." The last reported sales price per share of our common stock as reported by the Over-The-Counter Bulletin Board on May 19, 2006, was $.36.

With an AS of 75 mil and OS 22.737 mil-6/06
And Duchess selling 51 mil more,plus up to 35 mil for the company to raise cash(Equity line of Credit). THIS IS A SHARE-SELLIN/DILUTIN JESSEEEE!

Plus,they pay for services with shares,which are immediately sold,increasing float, because that consultant/professional has to pay bills too.
Explains why the stock has been tanking.
EVERYONE SHOULD READ THIS FILING!!! I am NOT saying this is a baaaaad,evil,or criminal company. This is a small company,struggling to survive,bleeding cash,diluting for cash,ect. An excellent insight into pinks/small public co's.
For me at least!! They outline everything pretty good for this newb!!
Don't know if this is one of those "death spiral" thingies or not.Maybe someone with more knowledge can weigh in.
As for a run,I dont see a very good one. Maybe .15 (the value of the warrants and cds),if that. But,will be interesting to watch.Their financials are...."gut wrenching". Tough business.wwwwooooofffff!

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It takes a lot of attaboys to make up for an aww chit

Posts: 483 | From: OK | Registered: Aug 2005  |  IP: Logged |