Ann: Trading Halt, page-35

If they are sounding out the Fundies, then they are asking the Fund managers to contact their major sophisticated investors for advice on a potential price that the investors are willing pay per share in order to raise $30-$40 million.

In this case, the investors will always state the lowest price they are willing to pay, and then usually a range valuation based on the number of shares and price.

The Funds of course will try and convince their clients to take a piece, because the fund will make it's fee.

I'm assuming the sophisticates will ask for something around the 18 cents mark, but that the funds may be able to get that up to 20 cents with some persuasion, now that KLL is in production.

It will be interesting to see what sort of discount is offered, and as usual, the share price initially will probably sink back to that discount level. I'm betting on 20 cents for dilution of about 120 million shares, but I've been wrong a million times before.

Gw