Hard to Treat Diseases(HTTD) DD
HTTD is currently involved in litigation with its former CEO Ronald Shinn and former Secretary Gerry Knight, due to their transactions of questionable legality that were contrary to the interests of HTTD's shareholders.
On May 2, 2003 International Foam Solutions, Inc.("IFS") completed a share exchange agreement with Shinn, and Oklahoma companies Hard to Treat Diseases, Inc.("HTTD") and T-19, Inc.("T-19"). Shinn was to receive stock in IFS in return for 100 % of the stock in HTTD and T-19.
Pursuant to the share exchange agreement, Harvey Katz resigns as President and CEO and Shinn becomes President and CEO.
As a condition of the share exchange agreement, the name of the publicly traded entity owning all three companies was changed from International Foam Solutions, Inc. to Hard to Treat Diseases, Incorporated.
Pursuant to the share exchange agreement, on May 9, 2003 Shinn and his wife are issued 350 million restricted common stock shares of HTTD.
On June 30, 2003 Shinn issues himself an additional 175 million restricted common stock shares of HTTD.
On August 18, 2003 Shinn issues himself an additional 5 million restricted common stock shares of HTTD.
During his tenure as CEO of HTTD, Shinn stated to Colm King and others that he was very interested in selling HTTD in order to convert his equity stake to cash.
HTTD officers were unaware that the formal Tubercin® toxicity testing was completed on October 8, 2003 and that the results were very favorable, but later discovered that Shinn was aware of the results on October 8, 2003. On October 13, 2003, Shinn, his wife, and Knight resigned.
On October 15, 2003 Shinn, acting through his lawyer, sent a letter to HTTD through one of HTTD's shareholders stating his intention to rescind and terminate the Share Exchange Agreement dated May 2, 2003. He also tendered the original stock certificates for the 530 million restricted shares of common stock. In essence, Shinn wanted to unravel the "merger" of a publicly traded company.
The original stock certificates for Shinn's 530 million shares were placed in escrow, frozen and non-voting. 350 million of the shares have not been reported canceled yet, they are part of HTTD's issued and outstanding stock! The certificates were not reported canceled because they are part and parcel of the terms of the share exchange agreement, which is binding and provided the company with 100% share ownership in HTTD and T-19. The remaining 180 million shares were reported canceled on 08 February 2005, and reportedly reduced the O/S by over 20%. Colm King, the CEO of HTTD has indicated that the 350 million shares in scrow were subject to cancellation pursuant to the decision due next week from the District Court in Miami. The current number of shares reported by the Transfer Agent is 510 million. Should HTDS win the verdict, a large number of the 350M shares could be cancelled.
Tubercin has been touted as being "... worth billions of dollars to the pharmaceutical industry." If HTTD wins this litigation it will have the marketing rights to Tubercin and T-19 everywhere on Earth except Korea. Dr Chung, the inventor, has the rights in that country.
Since the litigation started, Shinn's startup company ArTec, inc. (ATKJ) has dropped in price from $1.75 per share to .05 per share. During the past 90 days it has traded less than 60K shares. In the last 30 days less than 5K shares. During the same 90 day period HTDS has traded more than approximately 204 million shares. In the last 30 days approximately 150 million of those shares were traded and the price appreciated from a low of .009 cents per share to .033 cents per share. The marketplace has looked at the facts and smart money believes that Shinn hasn't a legal basis to rescind the SEA. They have voted with their checkbooks.
The Findings Of Fact for both ArTec and HTDS can be read at the PACER site. I believe after you read you will do as I have done. I have Invested in HTDS and Tubercin's future.
cheers
rrm |
