1372975--5/30/2007--FROMEX_EQUITY

related topics

{interest, director, officer}

{stock, price, share}

{stock, price, operating}

{investment, property, distribution}

{regulation, change, law}

The Company s common stock has never been publicly traded, the price may fluctuate significantly and a market may not develop for its shares. Because FRMO will continue to own more than 50% of the Company s common stock, other shareholders may have no effective voting power or control over the Company s affairs or decisions. Because the Company may, at some time in the future, issue additional securities, shareholders are subject to dilution of their ownership. Government regulations and legal uncertainties may place financial burdens on the Company s business. The Company s revenues are derived in part from agreements with companies controlled by members of the Stahl-Bregman Group, doing business as advisers in the capital markets. There are inherent conflicts of interest between FRMO and Fromex associated with the common management and Board of Directors. Fromex is dependent on FRMO with respect to the Consulting Agreement that is terminable each year after February 28, 2010 by consent of both parties, which are controlled by the same individuals.

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1372975--5/30/2007--FROMEX_EQUITY_CORP