Argex Titanium Inc. ARGEF

RE:RE:Massive Dilution

[morricone]

Actually there are creative ways Argex can avoid direct dilution. Example:

Argex creates a subsiduary company called Argex Junior which issues 500 million shares of stock at a  nominal value of $1 each. 300 million shares go to the financiers of the first plant for their $300 million financing contribution and 200 million shares are given to Argex itself for the technology use.

Now Argex Junior has control over the first plant and gets to keep all profits which are generated from that plant. Because of Junior's stock ownership 60% of the profits go to the financial backers and 40% goes to Argex the parent company. Argex Junior has full ownership of that first plant, the right to use the technology there and the right to eventually expand that plant at that location to increase profits.

Although Argex Junior has the right to use the technology at their plant they have no actual ownership over the technology and no rights to open brand new plants elsewhere.

The parent company Argex ( = us) retains full ownership of the technology and receives all royalties if they license it out elsewhere. They also have the right to open new plants themselves elsewhere (which they would have to get financing for). And of course they receive 40% profit royalties from Argex Junior.

This structure would eliminate the need for any dilution of the parent company's shares and at the same time provide a revenue stream from the subsiduary company once it's up and running. And it would allow us to protect our ownership of the technology.

Just one possibility.