Common stock available for resale may depress...

_Arthur

March 17, 2007

We have filed a post-effective amendment to a registration statement with the Securities and Exchange Commission (“SEC”), which has been declared effective, covering the potential resale by two of our stockholders of up to 923,019 shares of common stock, or 4.3% of our outstanding common stock. The selling stockholders are bound by certain selling limitations, which limit the numbers of shares of our common stock that may be sold at one time. In addition, we have filed a registration statement with the SEC, which has been declared effective, covering the potential resale by some of our stockholders of up to 2,852,449 shares of our common stock, or 13.4% of our outstanding common stock. The existence of a substantial number of shares of common stock subject to immediate resale could depress the market price for our common stock and impair our ability to raise needed capital.
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Can some of our financial wizards comment on this for me ? Seems significant.

5:43:26 PM


Re: Common stock available for resale may depress...

hamjudo2000

March 17, 2007

>>> We have filed a post-effective amendment to a registration statement with the Securities and Exchange Commission (“SEC”), which has been declared effective, covering the potential resale by two of our stockholders of up to 923,019 shares of common stock, or 4.3% of our outstanding common stock. The selling stockholders are bound by certain selling limitations, which limit the numbers of shares of our common stock that may be sold at one time. In addition, we have filed a registration statement with the SEC, which has been declared effective, covering the potential resale by some of our stockholders of up to 2,852,449 shares of our common stock, or 13.4% of our outstanding common stock. The existence of a substantial number of shares of common stock subject to immediate resale could depress the market price for our common stock and impair our ability to raise needed capital. <<<

The 923,019 shares were the shares owned by Baystar, which were split among BayStar II and SDS. Since 4.3% is less than the 5% reporting threshold, there has been no confirmation that they finished selling those shares. However, it sure seems like they finished selling them off some months ago. If they sold at their daily limit, they would have sold out sometime in December.

The 2,852,449 shares are the ones bought in the PIPE transaction at the end of 2005. Panglozz and El Corton have been tracking which of the PIPE fairies have sold out as of December 31, 2006. They're using quarterly filings [ http://www.nasdaq.com/asp/holdings.asp?mode=&kind=&symbol=SCOX=&FormType=Institutional&mkttype=&pathname=&page=holdings&selected=SCOX ]. I think the numbers for the end of March will come out in the middle of May.

If you want more details, I can figure out which sets of S- forms [ http://sec.gov/cgi-bin/browse-edgar?type=S-&dateb=&owner=include&count=100&action=getcompany&CIK=0001102542 ] go with which groups of shares.

6:12:02 PM


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