In the case of Green Globe International, the company was pleased to report its first contract to deliver sustainability services to the Estoril Congress Center in Portugal. While we do not expect every payment to the company to be reported in a press release, as this was the first since our the acquisition of the Green Globe brand was completed, it was important to report the first revenues delivered to the company. The worldwide opportunities for Green Globe are becoming more apparent every day, and we expect there to be more highly impactful announcements to be made in the near term as evidence of these opportunities.

CLX Medical has announced ThyroTest® as the FDA approved and CLIA waived product it has targeted for acquisition, as well as LETI Laboratories of Spain as the Master Distributor it has selected for the European market. The acquisition of ThyroTest® puts CLX in position to establish distribution for the device in the U.S. and worldwide markets. CLX will also continue to complete the work necessary to achieve FDA clearance and CLIA waiver for Zonda’s chlamydia test.

Both Green Globe and CLX are now positioned to improve their status in the public markets, and Javelin is going to take a prominent role in supporting the advancement of both of these companies. We hope to be able to expand on this topic and we will look for every opportunity to provide specifics whenever possible.

On separate topic, blog readers may have seen a recent press release reporting that Javelin Advisory Group was named in a derivative lawsuit filed by Krause Kalfayan Benink & Slavens, LLP. The suit involves Unico, Incorporated, a company that Javelin worked with several years ago. While Javelin has not been served with any papers concerning the suit, we do not believe that the services we provided for Unico will cause any exposure in this matter.

I am hoping that this type of frank and open commentary will be seen and both refreshing and insightful, and I welcome your comments or questions.

One very common question related to mergers and acquisition transactions, especially at the Pink Sheets and Bulletin Board level, is the question of dilution. In these markets, dilution is seen almost universally as bad. The reality is, however, that for companies in these markets to grow, they almost always need additional capital. This is why most of these companies are publicly traded in the first place.

The need for capital is important to understand, because if you have an interest in investing in a micro-cap company, you must take this potentially dilutive aspect into your consideration. Is it good dilution (limited, near term and returning greater value than it costs) or is it simply money raised for salaries and non-productive expenses. When choosing to become involved in a transaction, Javelin looks for companies that believe that dilution should only be used as a means to deploy assets that will represent greater value, either in the near, middle or long-term, for the client company and its shareholders. Whatever the case may be, it will be Javelin’s primary focus to assist client companies in managing the dilutive aspects while building shareholder value over time.

The purpose of establishing this blog is to take that extra step to communicate with those who have in interest in what Javelin does and especially in what companies Javelin is currently involved with.

Currently, we are under contract with 5 micro cap companies (FCCN, CLXN, GRXI, AVWI, HAZH), which vary from being “shells” that have no active, operating businesses in them to those that have assets/revenues, and everything in between. However, there are certain common threads. They all need the Javelin menu of services, which includes S.E.C compliance, financial reporting and oversight in variety of areas of public company management. In some cases, I will step into a management position when I feel that the client needs that extra direction to achieve its stated purpose. Many of Javelin’s current client companies are participating in acquisition or reverse merger transactions. They are all vastly different transactions, but the recent closing of the acquisition of Aero Exhaust by FCCN is an example of the type of transaction that Javelin will help to manage. In this case, we managed and executed the clean-up of a non-reporting public company, brought it current in its financial reporting and assisted with the acquisition of an operating company that has significant upside potential in its industry. Again, all of the merger and acquisition transactions will look different, but this is an example of how one such transaction can be managed by Javelin and brought to a successful close.