The consolidation has absolutely no impact on the value of Spy. In an earlier post you asked how the company was going to justify a higher market with the consolidation and financing,

"As far as I can see there is no reason to believe the market will support a doubling of SPY's market cap after the consolidation and financing. "

I think that's where your confusion is coming from. The only thing that will double our market cap is the financing. Consolidation has absolutely nothing to do with market cap. Our maket cap will have doubled at 290 million shares @ 4 cents or 29 million shares at 40 cents. Same market cap..

The first positive for shareholders in regards to the consolidation is that it is a condition of the financing. No consolidation,no financing, and in my opinion no future. So without the consolidation Spy won't even have the opportunity to become devalued from 40 cents to 10 cents it will just go bankrupt. If you don't think that happens have a look at Poynt's old chart and how it declined from 18 to10 to 7 to 5 cents to creditor protection to bankruptcy when it was unable to secure financing. Oh did I mention that Poynt was shorted into oblivion after the sp was increased to 18 or so cents I believe. They were financed after this sp run for about 15 million dollars at 19 cents~75 million shares. Their o/s shares were over 500 million. The manipulators had no problem getting their money back and more by shorting their shares against a high float and holding their warrants as cover. They needed more financing but it was not to be.But in your opinion a huge float is good? Most companies strive for a tight float.

If the company can't, "continue to encourage investors with partnerships, contracts,and innovation," then it doesn't matter what the sp is. Be it $40 or 4 cents the same outcome will occur. A drop from 40 cents to 10 cents is just as likely as 4 to 1 cent if they drop the ball or have a mistep, actually the latter is a much more likely scenario as people don't really take 4 or 5 cent stocks seriously.see above paragraph for scenario.

As for doubt creeping in,that is always a possibility. However, at this junction I see $6 million reasons that provide me comfort and the fact that they will own 55% of the company.

As to one of your last points I really don't see the logic in it. If she is going down,she will go down regardless of where the sp is at or the outstanding shares.Nothing matters at that point. The market will burn through your 290 million shares just as fast as 29 million, actually believe it or not it will be a faster contagion at a lower sp. At 40 cents theoretically you have 80 trades to get to zero. At 4 cents you have 8. A 1/2 one penny drop from 40 cents is a 1.26% decrease. A 1/2 penny drop at 4 cents is a 14% drop. I wonder which one excelarates quicker?

You've also stated that you have seen this illogical scenario play out before. Could you share an example with us? No need to provide a run of the mill consolidation example where a company is consolidating for the sake of a higher sp. I would be interested in one where the company just bought another company that was accretive to it's business and the consolidation was a conditon of a financing the likes of which the company has never seen before. A financing that will make it debt free.

Funds won't touch a 4 cent stock.But they will touch a 40 cent stock.It is my understanding from speaking to the broker at Beacon that was taking subscriptions we now have a few funds on board with this placement. Probably Beacon and by looking at the tape I suspect cannacord,sprott, and maybe Thomas Weisel.

Why are we trading at 6.5 cents now if the market doesn't like this deal. After financing(not consolidation) we will have a market cap of 17.5 million at 6.5 or 65 cents,you pick. If we follow your logic we should be closer to 2 cents to account for dilution if the market thinks that the financing and purchase of Poynt has added no value.

Let me leave you with this question. Would you purchase over 50% of a company and then place conditions on the purchase that would increase the odds of your initial investment decreasing in value? Essentially that is what you are stating. The people that took the financing are putting conditions on Spy that will lose them money.

Cheers

Long on Spy!