jmt, I'll let LQQX answer for me because it isn't me you are having the trouble trying to get ahead of, and I have written nothing for you to try to disclaim or twist. I'm sure by now everyone knows what your agenda is.
Subject: Re: From SI
Date: 1/3/99 10:30 PM Eastern Standard Time
From: LQQX
Message-id: <19990103223027.11224.00007365@ng37.aol.com>
jmt writes:
<< I do find LQQX missleading in his presentation. >>
If we're going to discuss misleading information, let's discuss your false and misleading statement that Elk International sold shares into the runup:
<< 4) There are so many names we all recognize on many stock transactions. Elk international ( controlled by Dror's brother) had options for $2M shares at a price of 2 cents per share, which was exercised (and dumped during the hype) in June. >>
I highly suggest you supply proof of this statement, or retract it. EDII is focusing on you. All they know at this point is that you are 31, non-college educated and "street smart". They have a list of your statements and are notifying the SEC tomorrow that they want to pursue this form of action. Daniel wanted me to relay, "You have the phone numbers if you want to get in touch with Dror to head this off."
<< If cash flows support the land, an apprasial would have been simple to acquire. >>
That $600,000 worth of EDII shares were paid in trade for $120,000/year of guaranteed royalties should be proof enough that this was a good deal. The valuation was done on a 24%-33% per year return. In two years, the transaction will have returned almost half of the investment, or $240,000. An independent
appraisal could have been done, but the board did not find it necessary, and voted unanimously in favor. Of course, they didn't ask jmt, a non-shareholder if it was OK. Whoops!
<< Who told danny an IOU would be OK in a transaction where the CEO borrows from the company till? >>
The board granted leeway to Daniel charging personal expenses, provided it was properly recorded. They knew it would be squared later with the accountants. That it was recorded at all as personal expenses is a good sign. He did not have the intention to hide it. Those expenses, like all expenses, will be handled on a quarterly basis now. If that's OK with jmt.
<< The comments concerning the SEC approval of the filing, then the rebuttal that the SEC does audits in fraud cases cleverly avoided the implication made that the SEC OK'd the filing. >>
That issue was addressed before with Dana, but I'll repost the answer just for jmt. Everyone else, please disregard.
If the SEC has a problem with what's being submitted, or the auditors have a question for the SEC, the SEC will inform the company or the auditors of proper protocol. The example that was given is the teleconference with the SEC, BDO, John and Daniel concerning the shares issued for past acquisitions. The SEC was satisfied that the way the company wanted to
record the transaction was legitimate, so the SEC approved it. We could
use the words OKd, supported, cleared or 20 other synonyms. Try not to get too anal about terminology.... or go ahead if that's your thing.
LQQX |
