"...2. Will the company include, in part, a shelf offering, to pay the balance for the acquisition?..."
Here's my suggestion to improve this question (Sorry - you asked!)
Your basic concern is obviously over the issue of dilution. But why limit Toups response to a shelf offering? He's just going to deny it. Toups prints shares - always has and always will. The entire question is pointless.
I don't know how longs can be so oblivious to Toups background. Even Chen came to his senses about something fishy going on around here but never stumbled over Toups and Midtown Partners - everyone's favorite death-spiral PIPE shills. Toups was the managing partner of the Chiscam - er, 'Asia Investment Banking' arm of Midtown from somewhere back around 2007 until his recent career as serial-CFO. But then again, he's still listed on Midtown China's 2011 lame web site ( http://www.midtownpartnerschina.com ) as a managing director. Which brings up my first suggested question for Toups:
1. Today, you get $10K a month for being the LPH CFO, $10K a month for being the WEMU CFO, and $6K a month for being the CBLY CFO, shares from all of them and God knows what from MidScam Partners. Are you taking some kind of CFO steriods? Are you worth it?
Now, back to Midtown. Face value nothing but a penny-pumper PIPE outfit worthy of general disdain. BUT they were involved in an extremely questionable relationship with the now-collapsed Vicis Capital back around 2008. Midtown would run a PIPE for some little BB company and hook up Vicis for a chunk of the stock. Vicis would (supposedly) immediately either manipulate or short the bejesus out of the unfortunate company. Do a search on Vicus and Midtown for the gory details.
Vicis collapsed, the FBI investigated and the best they could do was bust the managing director, Christopher Phillips, for wire fraud. Oh yeah, Mr. Phillips ran Midtown Parnters until around 2007 before he left to run Vicis. So, for Toups:
2. Do you still really work for Midtown? If so, do you have any plans to Vicis-ize LPH during the next round of dilution? Note: Vicis-izaton looks somehting like this:
Sorry - should have pointed out that those are a chunk of the PIPEs that Midtown ran back around 2008. I can't add the bankrupt or delisted companies of course, but I think the trend is pretty clear.
The fact that they had PIPEs isn't really an issue and wouldn't necessarily be for LPH. The fact that they had PIPEs *through* Midtown and probably on to Vicis is the point. Vicis is history and Midtown won't be involved in LPH.
I have little doubt that Toups will print more shares. Longs should't waste their time worraying about the inevitable. You should be *very* worried about where those new shares end up and what that means for Longwei.