We have all been in the dark as to what Urban and Roger Glenn are doing and I do not see that changing any time soon.

In this post I am going to show a few things I think the increase in the AS may mean. I will also touch on a few other items I think we all need to think about.

The first thing we will look at is an increase of 300 billion in the AS to dilute the current OS or float. This would be an option if Urban felt he needed the funds to make additional purchases like Claims/equipment/Race cars or just some walking around money for Urban and his buds. At the current PPS that would net about $90 million in cash. Now then how likely is this… not very in my book. Why you ask??  Lets look at it realistically. The new AS was raised on the 18th of August. since August 18th a little more than 30 billion shares have traded, at that rate it will be January of next year before every one of the shares was sold. That is also assuming that every single share that is traded during that time is sold out of the new AS. Something else to notice is that since last Monday when the new AS was made VERY public the trading has slowed to a point well below anything I have seen in the last 8 months. Today, September 1st, we traded a whole 1.2 billion. Now if I use an average for how long it will take to get those 300 billion out in the market we are looking at over a year, once again remember this is if every single share traded each and every day comes from the new AS only.

The Second Reason I think the AS may have been raised is for another acquisition like the Nevada Minerals deal or possibly a share trade for Funding.  Similar to the deal UCAD is working with the London group. This I feel has a better than good chance of being the reason for the increased AS. These would be restricted shares and thus not effect the Float untill a later date or can be repurchased by the company at an agreed upon price at a later date. This second option would never affect the float.

The third reason that I can think of goes back to my 7/28 post. First I will say that at the time of that post I had taken the word of others that the maximum AS for a Nevada Co. was 500 Billion and therefore based my theories on that assumption. As we know now there is no limit on the AS of a Nevada Co. here is a scenario I would have included in that post had I known.

If The MMs/Shorters are not willing to make a deal knowing that Urban held 300b more shares than his AS allowed. He could raise the AS, Making HIS 300billion shares real but the shares would still show on the MMs books as NSS. Still dilution?? Not at all. The shares he bought are already part of the OS and not dilution because they have been traded already. Urban could sell these shares back into the market and it would not effect the OS or Float because the MMs will have to cancel them as part of their shorted issue. This in turn means that Urban can remove the shares from the treasury at no harm to the shareholders or company. He could also sell the shares and reduce the AS and call it a retirement since the shares were originally NSS and the MMs will have to clear them from the books. In this scenario Urban raises cash and retires shares at the same time. If there is a Short Squeeze like I think is coming, Urban can hold till the last minute and sell for much more than the .0001 that he has paid for them.

A fourth reason, one I find interesting, is that it may have been raised to allow for a forward split of CMKX. There are some good reasons for this but it would only benefit shareholders if CMKX were to issue a cash dividend, tender offer to go private, or a merger.

Here are a few of things to think about.

• If all of the first 500billion shares were sold into the market since the AS was raised to 500 billion in March 2004 that would mean that if Urban started Dumping shares on March 1st and that every trade every day since that time was someone buying shares form the AS it would be an Average of  4.2 billion shares per day every trading day. That means that no one but Urban sold shares from March 1st to August 18th, when the AS was raised to 800 billion.
  

• Look at the dividend ratios... I will round off the figures to simplify. The UCAD dividend figure shows that we would have an OS of 779 billion now vs. 483 billion originally. Now if you believe that Urban dumped the 300billion since the 18th then why is there only an increase of 296 billion?? My guess is that he is telling us that despite what appears to be happening, the Float has dropped by 4 billion. This is using the assumption that all 7.5 million are given as a dividend and that Urban would get them also.

  Now using the 8% assumption and issuing 600k shares at .0000155 = 38.7 billion, and using the new figures, that's about 62.5 billion. Interesting enough that is about a 62% increase, which is approximately how much they increased the AS (60%). If this is the case I think these numbers reflect what the TA is showing as issued shares in the Float. They could not be the OS because we know that Nevada Minerals was issued 75 billion for the 60% interest in their 500k acres in the FALC.

  IMO either way is a good thing for us.
  

• Now look at the CIM dividend ratios... First it was .028 or 1.428 trillion and now it's .0256 or 1.562 trillion, an increase of  134 billion in about 10 days. This is assuming all 40 billion are distributed as a dividend to the OS. We must remember that this would be all shares including the NSS. Why is it so high? You must remember that these shares have been shorted for over two years so the amount of shorting could be as high as these numbers indicate. I also see no way that there could be an increase of 134 billion here unless there was some deal where 134 billion restricted shares were issued to acquire something, Claims or a Position in another company.

  Now lets look at the CIM shares using the 8% rule... that would be 3.2 billion distributed at .028. We have an OS of 114 billion and at .0256 it would be Exactly 125 billion. Notice that again the 8% rule shows that the UCAD dividend is exactly half of the CIM 62.5 x 2 = 125. This looks like one of two things. Either UCAD will do a 2-1 forward split between now and the pay date, or CMKX will do a 2-1 forward split between the UCAD pay date and the CIM pay date. Since I feel that UCAD is planning to move to a higher board I would bet on the 2-1 split of UCAD.

• Someone is now asking why such a big difference in the UCAD dividend number of 779 billion and the CIM number 1.562 trillion. I will try to show you what I think is going on here...

  The Company is using the 7.5 million UCAD to figure the dividend rate based on what the TA is showing to be the shares issued by Urban, this is the OS including all restricted shares. So they send the DTC the dividend ratio of .0000096 but not the number of shares to be issued.

  The Company then used the CIM dividend to find out what the DTC is showing as the issued shares. The way they did this is quite simple... The information the DTC is getting is that 40 billion shares of CIM will be issued to shareholders, not what the dividend ratio will be. The DTC then did the calculations based on their records to determine the ratio. Based on their records the DTC ratio shows that there are 1.562 trillion shares.

  IMO I think this shows that there is a short position of over 1 trillion based on the fact that Urban just raised the AS to 800 billion. I also feel that the float is going to be much lower than what we think and we could see one heck of a Squeeze in the very near future.

Once again these are MY thought and Speculation based on what I know now. They are open to question and I will answer any honest questions as best I can.

GLTA

Coreton

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