When will the 4 billion restricted shares become free tradable?

All of the 4 billion restricted shares were issued since the summer of 2006, when we went public; many of them were issued as recently as this year. Restricted shares do not become free tradable for 2 years, unless the shareholder hires an attorney to produce a legal opinion — in which case the shares are still restricted for at least one year.

Based on when they were issued and to whom, most of these shares should stay restricted until Summer 2008 (less than a billion) or Spring or Summer 2009 (most of the remaining 3 billion). See below for an explanation of why I say thisÖ

We went public through a reverse merger, so a few 100 million shares were issued to the original controlling shareholders and related consultants. Certainly, some of these investors would be likely to pay the attorney costs to make their shares free-trading; however, it appears that they have already made most of _those_ restricted shares free-trading by now.

Most of the currently restricted shares are owned by insiders and small-time friends and family of the company; these restricted shareholders are not only highly supportive of the company, but also are not interested in nor easily able to hire attorneys to obtain legal opinions. These are not ìtradersî, and — instead of spending money on attorneysí fees to sell their shares at the current undervalued market price — would much rather hold on to the stock indefinitely or for a long-enough-time to sell when the price is much higher.

Remember that most of these restricted shares are actually insider-owned, and those shareholders will most likely hold for a long time (in some cases until retirement), to keep stake in the company as well as support the higher share prices that keep their company and jobs healthy.