Friday, June 16, 2006
China Expert Technology (CXTI) new SEC filings
First, Barron Partners now owns 1,623,507 shares of CXTI, or 5.8% of the stock. Based on their website, I'm guessing they held/hold some of the toxic convertibles. I went back and checked the older SEC filings, but didn't find them listed.
Next, there was an amended 10-K for 2004 filed. Comparing this to the original 10-K is not easy and I'll cover it in a separate post. It looks like a lot of audit cleanup, some of it might be material.
The last filing is a registration to sell shares associated with the toxic convertables and warrants. 16 million shares exactly. The offer is for $2.25 which is based on the last price on May 31, 2006. Before the offer there were 27,945,837 shares outstanding on May 31, 2006. This offering increases the share count by 16-2.3=13.7 million shares, bringing the total to up to around 42 million shares. The shares can be sold in various ways for up to 2 years. Back here I had picked the number 52 million for the totally diluted share count. That may prove to be a bit low, so I'll increase my totally diluted share count estimate to 65 million.
These shares are being sold by
Alpha Capital AG is selling 2,435,593 shares (they own 4.99% of the stock): 252K from already converted convertible debentures, 1,2 million when convertibles are converted, 980K due to warrants.
DKR Soundshore Oasis Holding Fund is selling 5,091,504 shares (they own 4.99% of the stock): 724K already converted, 2.4 million to be converted, 2.0 million from warrants.
Ellis International is selling 1,207,003 shares (they own 4.31% of the stock): 115K already converted, 602K to be converted, 490K for warrants.
Platinum Partners Advisors is selling 1,240,850 shares (they own 4.44% of the stock): 216K already converted, 241K to be converted, 784K for warrants.
Platinum Partners Long Term Growth is selling 6 million shares (they own 4.99% of the stock): 1 million already converted, 2.8 million to be converted, 2.3 million for warrants.
These groups are selling all of their shares and will own 0% of the stock afterwards, although I'm guessing there could be more convertibles (or less and they don't actually sell this many).
On November 6, 2005, we received a notice of conversion from Ellis International Ltd. Inc for the conversion of 115,128 shares representing an amount equal to $80,000. On November 7, 2005, we received the following notices of conversion: (i) from Alpha Capital AG for the conversion of 251,844 shares of our common stock representing an amount equal to $175,000; (ii) from DKR Soundshore Oasis Holding Fund Ltd. for the conversion of 724,005 shares of our common stock representing an amount equal to $503,111.11; (iii) from Platinum Partners Long Term Growth I, LLC for the conversion of 1,002,426 shares of our common stock representing an amount equal to $696,561; and (iv) from Platinum Partners Advisors, LLC for the conversion of 215,866 shares of our common stock representing an amount equal to $150,000.So they did convert a bunch of shares during that downturn immediately after the convertibles were announced. Figures.