Today talked briefly with Rick Ilott, found him in deep
anger and frustration at VSE, that to survive on this exchange
one has to play the game through the brokerages, which "own" it.
In any event they likely don't have time to put together financing package. He is not optimistic about keeping the property, but
they haven't heard back yet from their South African counterpart. The deal was that they were supposed to have assembled equipment by Mar 31st. They needed total of $3.5 million and actually original financing package included more than that. They should have some news later this week. Gexpo in any event is only the intermediary
payment of $600 k was to them, that's no problem, the issue is
with the Angolan principals.
He believes there are more than 1000 investors, maybe 2000
as many would not have registered securities , held at securities houses.
He believes Diamond Works' hands are clean. STS has had discussions with Eric Friedland about possible cooperation
such as J/V and found them cooperative and responsive.
They continue to explore financing and may have further news
on Thurs, (though its moot point if concession is cancelled).
Just for the heck of it I will contact a lawyer I know in
Vancouver with a large corporate firm to find out the ins and
outs of any legal proceeding against the VSE, including potential cost. It may not hurt to threaten the VSE with a
discovery proceeding and a case for restitution and damages,
though I am not confident of the outcome. But it is an expression of seriousness, could get into the media and could
tie up individuals there with nasty discovery proceedings.
(I've been in them in corporate situations, they are very uncomfortable, you are under oath and they are the biggest goddamn waste of time there is, hundreds of pages of transcripts. The VSE people would have to prepare with their lawyers etc....if a court would agree to hear a case. The difference as
I remember between U.S. and Canada is loser in latter case may have some liability for winner's legal expenses).
STS management had advised the exchange of the consequences of their denial and the Exchange and Exchange had told them
such a disapproval of the financing was their "prerogative".
It still is not clear to STS what the basis was. As far as they know no letter has been sent by the Exchange. The exchange had verbally advised them of the negative decision,
and STS thus didnt file an application. So there's no paper trail. This is unbelievable. The alleged impropriety of the
financing group occured in Florida, out of VSE's jurisdiction
in any event.
(Of course in view of STS's selection of George Chelekis it may well be their selection of financier was unwise and a red flag also,
but anyhow above is the story I heard from Rick) |
