Hi Jorjenzac,
Because several people will read this response, I'm going to give a brief purview of DEBENTURE before I tell you the status we are in. I'm aware that my mini-lesson in debenture is probably old hat for you pros, but just in case there are some neophytes aboard, here goes"
A DEBENTURE is an IOU (like a bond). Smaller companies which need cash take out this loan; the larger corporations are willing to do this for 2 reasons.
1. good interest on the "bond"
2. Many debentures (especialy Canadian - please remember the Canadians executed this "loan" through a kind of blind corporation concealing their true idetity) have a convertible option. This means the larger corporation (usually expecting the smaller to see a rise in stock price due to the influx of needed cash) sometimes gets its money back by converting the debt to common shares and then selling those shares for a profit -
Now, unfortunately, there are snakes in this business. (Please rent WALL STREET at your local BLOCKBUSTER tonight if you want an inside peek at this snake pit.) There is a way (especially in Canada of also selling those same convertible shares short). Sometimes these corporations ( and I am not referring to any corporation specifically) can sell the shares short to get back their investment and a lot more. Some of these firms are not beyond staring rumors about the shakiness of a company, anything to drive the price lower - including "dumping shares. The clever "name' for such nefarious groups is a Bear's Den! The pun is obvious.
O K - now to finally answer your question which I have spent 3 hours researching and telephoning and talking to many people, including a beleaguered, but tenacious as a bull dog, Tom Hughes!
Tom has indeed sent notification through the ECNC attorneys of the payment of the debenture. No debt can be paid unless the debt is cancelled. You have to get the debenture returned. Herein to date, the Canadian firm has not responded, thus forcing Tom to go to the next legal level.
Jorj, I understand your apprehension, and I share it. I've got a 100,000 shares of this " at risk" myself. But, Tom cannot reveal everything he is doing for obvious reasons. Notification is step one. That has been done. Addressing failure on the part of the Canadians to respond is being handled as we speak. Bad guys eventually reap what they sow, one way or another.
Now, a good way, meantime to boomerang this thing is to keep the buying going. Potential buyers are looking at the bargain of a lifetime. Believe me, Tom is on this more than you might imagine!
Ranger |
