Hello Rick
I am obviously as disgusted with the situation as you are Rick, but I am not convinced we are talking about a tanking of the stock. I am also not convinced that we are talking embezzlement, subject to the findings of an investigation.
An inapproptiate use of company funds inconsistent with the long or short term objectives of the company and certainly inadaquately securred, for which there can be no excuse. Failing to duely protect the interests of shareholders and/or assets of the company.
I agree, the remaining Directors have an obligation to explain why this loan was approved with their knowledge. Failing an adaquate explaination, once new management is in place, they should commit to resignation.
I can't imagine that new management could presume to survive and/or avoid charges should they even consider absolving past management of personal responsibility for obligations and/or benefits, should it be proven that any criminal activity has occurred and/or personal benefit or debt, foregiven.
Under such a sham, I would expect the VSE to appoint an interim CEO and very possibly commence procedings on behalf of shareholders, possibly even revoking the companies rights to trade on the exchange. In the current environment, they certainly would not want to be seen as soft on any such issues.
If Farrel and LMX have any smarts, they will be making immediate arrangements to repay these misappropriated funds as I type.
Regardless, the assets are real and the company is (was) trading at a considerable discount to book, irrespective of last year's gold price, future price or the potential of Royce. Any liquidation, subject to debts, should realize a decent return on equity.
In the absence of management action, do not discount the possibility of a class action by shareholders, on behalf of shareholders, especially american shareholders, to collect these debts.
Regards |
