You're quite right. It said nothing of the sort.

Quote: I must have missed it where it said that the money was all going to PQ and friends.

The shares are authorized (not issued yet) to pay for services. I assume that SFMI authorized more than they will need, so that they won't have to repeat the process. Which makes quotes like the following seem all the more ridiculous:

Quote: Seriously, how can this info be "factored in"?! This board has been talkin buybacks for months and trying to play down the threat of any more mass dilution.... This 40,000,000 share tranche, along with the 70+ million shares about to be diluted per the recent loan, plus millions in outstanding discounted notes soon to be converted, as well as the millions in dollars in stock payouts to "consultants" each quarter

It's factored in because SFMI has been trading shares for services all along. Among other things, it's been discussed ad infinitum on this board that RS will be receiving his compensation in the form of stock. It's doubtful the full 40M will be issued- I'm sure SFMI authorized more than they will need in order to make sure that they don't have to repeat the process again. And note the use of "will be issued"- those shares will be issued throughout the rest of the year AS NEEDED, not dumped on the market today as some posts imply. And the talk of the "70+ million shares about to be diluted" is ridiculous, as an analysis of the LOC will show (if you need help, there's a sticky labelled "SFMI's mythical dilution"). The LOC allows a max of 2M shares every 25-30 days, which over the 24 months of the loan works out to about 58M shares MAX. I repeat: that's a MAX of 2M shares every month or so. And that number will very likely be reduced by any number of factors outlined in the LOC agreement. Read it. And that's assuming that SFMI over the next TWO YEARS continues to draw from the LOC at the maximum rate (no indication that they have used it so far...). This has all been discussed before (hence the sticky), so every regular reader of this board should know this. As for the "millions in dollars in stock payouts to "consultants" each quarter", what the heck do you think the filing for the 40M shares says they will be used for? (Hint: the title of the filing is "2011 Employee, Consultant and Advisor Stock Compensation Plan"). Once again, SFMI's use of shares as compensation for services has been going on all along. This is nothing new.