Dave,
About a year ago, WIM had around 12.8 million RUXR (GOLI) shares.
Between then and Oct. 22 1999, about 10 million of those shares were "divested" at between .01-.10/sh. I haven't seen any insider trading reports after that date, so maybe they never sold the remaining shares or maybe they are no longer required to file reports (after their ownership fell below 10%). Many of the sales were private trades, so we can only imagine who ended up with them at those give-away prices.
WIM also acquired 3.7 million warrants, at least some of which were to acquire GOLI shares at .15/sh.
What burns me, though, is how Stan managed to acquire so many GOLI shares. He seemed to have done a very good job of looking out for himself.
He incorporated Galaxy International on 27 July 1999 with a grand total of $200 of paid up capital. He had half the shares, so that means he put in about $100. Then, somehow, this shell company acquires the international rights from Galaxy US. Then, less than a month later, RUXR/GOLI signs an agreement to acquire Stan's glorified shell for 7.5 million GOLI shares. Even at the then market price of only .10/sh, that means that he managed to change a $200 investment into a $750,000 one (which is now worth about $30 million).... Nice trick, if you can stomach it.
If he was truly looking out for GOLI/WIM shareholders, why not just skip over the creation of the Galaxy International shell and do a deal only between RUXR and Galaxy US? What value was his 20 day old shell adding to the equation? Well, yes, it did add quite the sum to Stan's pockets. I can see no other reason for Galaxy International's creation and inclusion in the deal other than to gift Stan a bigger piece of the action. Can anyone say fiduciary duty?
So, while Stan was busy selling WIM's RUXR shares for a nickle or so each, he was making sure that he would end up with hundreds of thousands of RUXR shares for himself.
Am I ever grateful to him that we WIM shareholders did so well on our RUXR investment. Thank you Stan from the bottom of my wallet. |
