SP Discussion, page-825

Exactly my thoughts, Entries here really dont look too bad but then you need to think 82.9 million shares, coming out of escrow next month, of only 138 million in total issued equity, so if price can fall like this with only a 55 million shares free floating, imagine when supply is over doubled, and the escrowed holders would be aware of the troubles better than anyone, so if they start selling it would not be positive at all. We also dont know the dynamic in the company, Paul Benhaim might be bitter about being kicked out of CEO position on the company he founded, might want to try to take money and run. Need to remember too, they did not pay for these shares, so even if they sold the shares at .50 they are making 41.45 million, even at .25 cents they are making $20 million if they sold, thats a hell of lot more than they have put into the company, and if they think the company has issues why not take the free money?

Also another reason stopping me entering right now is the need for cash is obvious , CR coming and I suspect maybe wheels are already set in motion and they have approached some firms which is why maybe the share price is falling, when they go seeking capital raise advise, private firms behind the scenes get noise of it (who they approach, then their connections, etc, word gets out) and act accordingly. If a CR is done now, it will be at a discount to the current price too, perhaps they could ask for .50 at this stage, the longer they wait the worse it will get. Dont know who would want to do a CR on a company with a class action as well, might just be throwing money away, its a brutal combination of timing and events for EXL.

Class action could legitimately bankrupt the company, its close already without a massive legal payout. So before I would jump in for long term would like to see the next quarterly, the class action results whether case dismissed or payouts required, going to be a legal bill no matter what, how the holders of escrow shares act when they are released from escrow, and the likely coming CR price.