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  4. Smokefree Innotec In (SFIO) Message Board

Good to hear... Whatever happens eventually, one

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Post# of 301
Posted On: 07/23/2012 6:35:34 PM
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Posted By: EliteYoda
Re: Asterix #31

Good to hear...


Whatever happens eventually, one thing we all can be relatively confident of is that the only longs still left holding shares in this stock are truly the ones who have always had faith and belief in the potential in the product and believe the company has the ability to do great things. That knowledge in itself is a very positive factor I think for shareholders and because of the DTC global lock, there have been less than 2% of the total shares traded since last year so I imagine not very many new shareholders have entered into new positions in the company and its more likely that even a few longs could not wait so they perhaps sold out and there are even fewer longs in SFIO. This means the only shareholders of whom still exist are the true believers and that makes for a very strong investor base in any company.


I personally think that the full execution of the Denverson deal would be the easiest and quickest way for the company to obtain operating cash in order to move forward with the business plan, however without a Denverson IPO, those convertible notes are worthless. If Denverson never gets going and SFIO cannot fully execute the LOI then I would think there are other options for raising capital, like private offerings or line of credit from a bank. Unfortunately dilution is not really a viable option for a stock globally locked so the company cannot raise funds that way. Perhaps getting a very tiny inventory of RE/AL ecigs and selling a few of them online and using the proceeds to purchase more inventory, etc, etc is one way to slowly ramp up operations, however doing it that way would really take a long long time. Obviously getting the DTC to unlock the stock would be the ideal solution but no one has heard anything from management for a year and there is no way to really know why the DTC global lock is still on the stock so its questionable that the stock could ever trade normally again. The real question is what is required by the DTC in order for them to unlock the stock? Filings? Forms? Financials? Fees? Participant to vouch for the stock? MM? T/A? Resolving possible massive FTDs and naked shorts in the system? Who really knows other than the DTC?! There is now a path for the issuer to write a letter to the DTC requesting a reason for the global lock and what the issuer can do to resolve it however no shareholders know what management has done over the last year in this regard so it is all speculation.


Whatever happens, in my own humble opinion, I just think shareholders desire to know the truth of the state of affairs and current status of the company and what if any plans are in place to resolve some of these issues to get the company in an operating state once again. I think the stock can sit locked for however long it takes to get unlocked, shareholders have waited over a year already for progess on the DTC so its clear that this is not necessarily the key issue. The primary issue in my mind is transparency and operations. Shareholders need an update, PR or investors note, whatever, in order to gauge the current status. Ideally this would involve filings like disclosure and financial reports in order to get up to date with the SEC and OTC markets reporting requirements. Then as regards operations, if the company set out to obtain an inventory, however small, of ecigs and then open an outlet, any outlet, online webstore, whatever, to sell the ecigs so that existing users could order replacements and filters then it would be a major step in the right direction. If after all such progress, the DTC continues to refuse to allow the stock to trade then so be it. At least shareholders can realize that value is being created over time by way of the company having a growth path.


Cheers


$SFIO! 



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