Javelin Advisory Group

In my first blog entry, I discussed the work that Javelin does on behalf of its client companies and the types of services and transactions that Javelin specializes in. Due to the significant attention we have recently received, we have created this blog as an additional communications tool for those interested in following our client companies and their activities. To expand of the blog purpose a bit, I have been very closely involved in work on behalf of certain of Javelin’s client companies, and the blog will be an opportunity for me to report on some of my activities. These will be events and topics that do not rise to the level of press release or public filing material. On that note, we will always remain cognizant of public disclosure regulations and only report material information through the proper channels. We do feel however, that there will be plenty of opportunities to discuss my activities and for me to maintain a direct dialogue here with the blog audience.

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.

I chose “Sharp and to the Point” as the Javelin slogan because I wanted us to be just that. No extra words and precise answers, something quite rare in the micro cap playing field.

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.