CAPITAL GROWTH SYSTEMS, INC.
500 W. Madison Street, Suite 2060
Chicago, Illinois 60661
December 14, 2009
Mr. Adam Phippen
Staff Accountant
United States Securities and Exchange Commission
Division of Corporation Finance
100 F Street NE
Washington, D.C. 20549
| RE: | Capital Growth Systems, Inc. | |||||
| File No. 0-30831 | ||||||
| Amendment No. 3 to Form 8-K | ||||||
| Filed August 19, 2009 | ||||||
Dear Mr. Phippen:
This letter sets forth the response of Capital Growth Systems, Inc. (the “Company”) to the Comment, dated November 4, 2009, of the staff of the Division of Corporation Finance (the “Staff”) to Amendment No. 3 to Form 8-K filed August 19, 2009. In order to ease your review, we have repeated the Comment in its entirety.
AMENDMENT NO. 3TO FORM 8-KFILED AUGUST 19, 2009
| 1. | PROFORMAADJUSTMENTSRELATEDTOTHEPROFORMACONDENSEDSTATEMENTSOFOPERATIONSSHOULDINCLUDEADJUSTMENTSWHICHGIVEEFFECTTOEVENTSTHATARE: (I) DIRECTLYATTRIBUTABLETOTHETRANSACTION, (II) EXPECTEDTOHAVEACONTINUINGIMPACTONTHEREGISTRANT,AND (III) FACTUALLYSUPPORTABLE. THEPROFORMAFINANCIALINFORMATIONSHOULDILLUSTRATEONLYTHEISOLATEDANDOBJECTIVELYMEASURABLE (BASEDONHISTORICALLYDETERMINEDAMOUNTS)EFFECTSOFAPARTICULARTRANSACTION,WHILEEXCLUDINGEFFECTSTHATRELYONHIGHLYJUDGMENTALESTIMATESOFHOWHISTORICALMANAGEMENTPRACTICESANDOPERATINGDECISIONSMAYORMAYNOTHAVECHANGEDASARESULTOFTHATTRANSACTION. ASSUCH,PLEASEREVISETOELIMINATEPROFORMAADJUSTMENTS (L), (M), (N),AND (P) ORADVISEINDETAILWHYYOUBELIEVESUCHPROFORMAADJUSTMENTSAREAPPROPRIATE. DISCLOSUREOFTHIS |
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FORWARDLOOKINGANDPROJECTEDINFORMATIONMAYBEDISCLOSEDINTHEFOOTNOTESPROVIDEDTHEINFORMATIONISIDENTIFIEDASSUPPLEMENTALINFORMATION. INADDITION,PLEASEREVISETOCLEARLYEXPLAINTHEASSUMPTIONSUSEDINCOMPUTINGPROFORMAADJUSTMENTS (E.G.,THEEXPECTEDLIVESORAMORTIZATIONPERIODSOFIDENTIFIEDINTANGIBLEASSETS)INTHENOTESTOTHEPROFORMAFINANCIALINFORMATION. |
The Company has revised the pro forma condensed consolidated statements of operations to remove those certain adjustments identified and enumerated above to ensure compliance with Rule 8-05 of Regulation S-X. Contemporaneous with this correspondence, the Company has filed Form 8-K/A Amendment No. 4.
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Mr. Adam Phippen
December 14, 2009
In response to the Staff’s request in your letter dated November 4, 2009, Capital Growth Systems, Inc. hereby acknowledges that:
| (1) | The Company is responsible for the adequacy and accuracy of the disclosure in the filings; |
| (2) | Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking action with respect to the filings; and |
| (3) | The Company may not assert Staff comments as a defense in any proceedings initiated by the Commission or any person under the federal securities laws of the United States. |
Very truly yours,
| CAPITAL GROWTH SYSTEMS, INC. | ||
| By: | /s/ Patrick C. Shutt | |
| Patrick C. Shutt, Chief Executive Officer | ||
/s/ Jim McDevitt | ||
| Jim McDevitt, Chief Financial Officer | ||
cc: | Mr. William Thompson | |
Branch Chief United States Securities and Exchange Commission Division of Corporation Finance |
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