Hi Mike,
Noted and compiling, many of them are already being asked on this
thread. Meanwhile to all:
I got a phone call from my solicitor contact in VCR who works
for a major law firm and heard his informal comment as follows:
-1- After hearing what details I knew about the STS case he feels
something does not smell right and there may be much more that
has gone on behind the scenes than either STS has said or we know;
-2- Agrees first thing to do is to gather the facts and suggests
whoever goes to Annual Meeting to beforehand to read thru the
Public File on STS, make copies of anything interesting.
(I didnt quite catch where is public file: at Exchange itself
or Securities Commission, but it's available for review by anyone).
-3- This would smoke out for example insider reports, were any of
principals selling when last phase of financing was being finalized?
-4- My contact believes it would be very difficult to have a court
accept litigation against the Exchange. The VSE has made it very
clear in public statements before that they will deny financing
by parties they find objectionable. They may be heavy-handed
but they have made it very clear they will take strong actions to root out irregular activities by listed companies or financiers. They are not doing something they have not stated publicly. And they would
tell the court that they should not be penalized for acting to
prevent soiling of the reputation and standing of the Exchange
which is in best interests of the market and shareholders.
-5- Obtaining recourse would be an uphill battle, and probably
any efforts would have to center on STS and management:
Was disclosure to shareholders inadequate?
Should the Company have done something else to ensure the financing?
But the key point would be any improper action by directors or management prejudicial to shareholder interests such as insider selling before financing went down.
Since my contact is a solicitor he doesnt do litigation, though
he practices securities law, so he can provide name of appropriate
lawyer if shareholders have interest to pursue any action or investigation. I don't mention my contact's name here because his comment was informal (as mentioned before I worked with him on a merger in B.C., and he is very capable and a good guy).
Re meeting: suggest for attendees to review the Public File and meet before the meeting to coordinate approach, just expressions of anger and frustration won't help much, digging out what really has happend might. It should be helpful also to get a list of shareholders from STS to the extent possible. |
