Celerity Systems, Inc. (CESY), a company that completed an IPO in November 1997 and has since gone through a number of incarnations, recently sold off its remaining assets and redirected its efforts on the homeland security sector, where it will seek to acquire small and medium sized businesses. To reflect the change in focus, the company will be changing its name to Homeland Security Capital Corporation.
|An SI Board Since December 2005|
In August 2005, the company hired C. Thomas McMillen as its CEO. Mr. McMillen, a man who could currently be best described as a homeland security entrepreneur, is a former Rhodes scholar, NBA player, and Congressman. He is the CEO of Fortress America Acquisition Corporation, a blank check company that recently completed an IPO that raised $46.8 million. He is also a significant shareholder of Global Secure Corp., a homeland security company that is in registration with the SEC and hopes to raise $100 million.
As of October 24, 2005, Celerity Systems, Inc. (CESY) had 4,390,579,206 common shares outstanding. Also outstanding were 1,000,000 preferred shares, which are convertible into 1,000,000,000 shares of common stock when the company emerges from its status as a Business Development Company as defined under Section 54 of the Investment Company Act of 1940.
The company has entered into a term sheet, which is subject to the signing of a definitive agreement, with Cornell Capital Partners LP, whereby Cornell will invest $50 million in the common stock of Celerity.
The stock closed at $.0016 on Friday. If you assume that the preferred shares are eventually converted, the company, which has a net worth that approximates $1 million, has a valuation of $8.6 million.
Did I mention that they need to do a reverse split.
An investment in this company is a bet on Tom McMillen, who is currently juggling a lot of balls in the air. I am convinced that Mr. McMillen is either going to make a lot of money or come to a bad end. I would not bet the house on this one, but it might have some speculative appeal. Tom McMillen knows how to generate publicity.
Celerity Systems SEC filings: