Not Just Spineless But We Can Write Trash As Well!

That  seems to be what the company is saying through
its action about this matter when they talked about it
in their recent filing:

"Midsummer Investment, Ltd invested in us prior to the January 2008 recapitalization and made an additional investment in connection with our recapitalization. As a result of those investments, as of December 24, 2009, based on a Schedule 13G filed by Midsummer with the SEC on December 24, 2009, Midsummer holds 8,344,619 shares of our common stock and warrants to purchase 5,551,034 shares at $0.18 per share. In November 2009, Midsummer had reported in filings with the SEC that they sold 2,289,417 shares of our common stock. As further reported in Forms 4 filed by Midsummer with the SEC in December 2009, due to volume limitations on selling restricted securities held by affiliates, Midsummer’s broker was required to repurchase the majority of these shares and restore them to Midsummer’s account. The repurchased shares are part of the total of 8,344,619 as reported. As of July 31, 2010, Midsummer has not made any additional filings with the SEC regarding their ownership of our equity securities and we therefore believe they continue to hold the same number of shares and warrants as reported in December 2009.


The common stock and related warrants owned by both (a name we do not need here) and Midsummer are not registered for resale with the SEC. Due to this, combined with each party’s affiliate status, both parties are currently limited in their ability to sell our common stock into the market to 1 percent of the outstanding common stock during any 90 day period. For example, one percent of the 53,772,055 shares outstanding as of July 31, 2010 would be 537,720 shares per 90 day period...Midsummer, in our opinion, is an affiliate solely because of the size of its holding. As of the date of this filing, Midsummer has no current relationship with the Company other than as an arm’s-length investor. "


Lets start first by saying they did not even get
the numbers right.The number of shares sold by
Midsummer was 2428000 not "2,289,417".Second,they
reported buying back all of them and not "the majority
of these shares".They did not even get that right.
One could go back to the selling and buyback filings
and add the numbers himself.

In addition how come they were allowed to sell
shares in excess of the allowed amount according
to that "affiliates" restriction to begin with?That just
added another question here instead of an answer.

And if that "affiliates" restriction was the reason
for the buyback then why did they claim buying back
even the amount of shares they were allowed to sell
according to that restriction?

Who agreed to sell them that amount of shares
at that time?Where and when did the related
transactions happened?How much did they pay
for them?

If finding someone willing to let go of his
shares at that time was that easy,why did the
stock was sold with naked shorting because of
a lack of available shares for borrowing and
remained all that time on the SHO list?

The contradictions are filling the room here.

There are also many things which could fit
that their selling really happened but there
is none for their claimed buyback.
Moreover,the stock remained on the SHO list
for a long time then exitted without any noticeable
buying of shares to be delivered.So,one could believe
in that buying back and he would need to explain it
in addition to explaining that SHO list thing.He
would end up with two unexplainable things.Or one
can combine its being fake with that SHO list
thing and end up with zero things to explain.

So in short,believing in that buyback would
leave so many scattered unanswered questions
while not attempting to deny how fake it sounded
answers those questions and shows a connected
picture.That would become especially true when one
extends his vision to the complete thing including
the signed financing deal and attempt to see the
whole picture and how things would fit altogether
there.

Finally I say here the same thing I wrote to the
SEC.This buyback filing is one the biggest filing
jokes the SEC has ever received.Yet they insisted
on continuing to abuse us with that defrauding trick
in spite of giving them months and months of time.
They might have filled the gap with real shares
from Dutchess (directly or indirectly) by now but
I think there is still a big probability that tracing
that those shares came much later than when they
claimed that buyback is an attainable task.