acquiring, holding, voting, or disposing of any securities of the Issuer or otherwise with respect to the Issuer or any securities of the Issuer.
The reporting persons have entered into a Joint Filing Agreement and Power of Attorney, dated as of March 8, 2011, a copy of which is attached as
Exhibit 1
to this Schedule 13D.
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The securities covered by this statement were acquired for investment purposes. Each reporting person believes that the common stock of the issuer represents an attractive investment opportunity.
On November 9, 2010, the Issuer entered into an Agreement and Plan of Merger with Family Dog, LLC, a Colorado limited liability company (FD), its wholly-owned subsidiary, FD Acquisition Co. (FD Acquisition), Troy Lowrie, and Micheal Ocello (the Merger Agreement). Pursuant to the Merger Agreement, if approved by the requisite holders of Common Stock of the Issuer and subject to the satisfaction of other conditions set forth therein, FD Acquisition will be merged with and into the Issuer, the Issuer will survive as a privately-held, wholly-owned subsidiary of FD, and each share of the Issuers Common Stock (except for shares held by the Issuer, Messrs. Lowrie and Ocello, certain of their affiliates, and shareholders that are eligible to and elect to invoke dissenters rights), will be cancelled and converted into the right to receive $2.25 in cash, without interest and less applicable withholding taxes (the Merger). The Merger Agreement is described in detail in (and set forth in its entirety as an Annex to) Amendment No.1 to the Issuers Schedule 14A filed by the Issuer with the SEC on February 3, 2011 (the Schedule 14A), and all statements herein with respect to the Issuer, the Merger and the Merger Agreement are qualified in their entirety by reference to the Schedule 14A and Merger Agreement.
Spoede LLC has been offered the opportunity to contribute the shares of Common Stock covered by this statement to FD immediately prior to the Merger in exchange for an equity interest in FD. If the Merger is approved as described above, the reporting persons currently expect that Spoede LLC will contribute the shares of Common Stock covered by this statement to FD as described above. However, the reporting persons are not obligated to contribute their shares to FD, and there is no other legal or other contract, arrangement, understanding or relationship between any of the reporting persons and any of the persons or entities described in the Schedule 14A with respect to voting, disposition or any other matter concerning any securities of the Issuer, and
each reporting person declares that neither the filing of this statement nor anything herein shall be construed as an admission that such person is, for purposes of Section 13(d) or (g) of the Act or any other purpose, a member of any group with respect to the Issuer or any securities of the Issuer or has acted or agreed to act (or is acting or agreeing to act) together with any other person (as a partnership, limited partnership, syndicate, or other group or otherwise) for the purpose of
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