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Message: Poison Pill...

Poison Pill...

posted on Mar 07, 2007 10:18AM
I have read through the 8K and attachment.

I have not talked with Paul or Stan regarding this 8K.

My interpretation is that it is a Poison Pill.  I have seen this executed before in other cases where there is a risk of another "entity" gaining control of the company through the acquisition of shares in the open market.

Heck, they might even be concerned with my position in the company to swing my voting weight around.

Points that I see in the 8K:
Arizcan purchased for $500,000; 51% voting power through the holding of 500,000 Series A, non convertible (no common shares).  In other words, they maintain voting control but not ownership majority.

Attached to this is that Arizcan paid $251,000 for 6 million warrants.  These warrants are priced at .50 with a cashless conversion.

We have to be above .50 for them to get any shares from the warrants if they used the cashless conversion.

The only reason to do both the preferred shares to gain voting control and the warrants is if they expect that we will get the contracts to make VYTC a desirable to own/buy entity.

IMHO, it is a bullish sign.

Kent

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