Jason: Techcorp was never a divestiture, it was merely a shell with no revenues until Alpine ceded to it the proprietary rights to the UBOP prototype for $600,000, in exchange for Alpine buying $2.1 million of the same product from Techcorp. In other words, Alpine was buying back from Techcorp what it had owned beforehand. It was just an attempt to create an offshoot company to benefit the insiders of a company with the same management, Board etc. as Alpine. If it works fine, they have a going concern and will reap the rewards, if it fails, no problem, the buddies at Alpine will find an underhanded way of rescuing you. Another "related party transaction" that Alpine is famous for.
The fact is, almost all of Techcorp's revenues last year were derived form this transaction, and as we can see from Techcorp's Q1 results, the company has no more orders or revenues from this product. Q1 revenues were less than $200,000 and that was entirely for spare parts. Now that Techcorp is floundering badly, Alpine is proposing to rescue its buddies from this ill-fated project, and Alpine wants its shareholders to pay the price. And for this you are asking Alpine shareholders to accept a 1/3 dilution? What a joke. Of course, Alpine shareholders have no say in the matter as only shareholders of Techcorp will be asked to vote. The fact that insiders of Techcorp control practically all of the outstanding shares turns the vote into a farce. I wonder what the chance of them turning this down is? hahahahahahaha.
This whole thing reaked from day one. I now understand why this stock is shunned by the investment community. Look at all the "related party transactions" involving this company.
From a former shareholder. |
