>Could anyone share his/her opinion about how it is possible that this >company (being in such a bad financial situation) can still be >officially alive?
There are a few ways of looking at the company's existence (through my rose-colored glasses):
NOTE: these are only my guesses!
1) As PT Barnum says, There's a sucker born every minute. Perhaps this statement is posted at the meeting room Comparator rents. Even with the bad press both locally and nationally this company has received, (hey, even with the published SEC sanctions!) this company still knows that people are still magically drawn to this company, due to share price and the fingerprint-technology "mystique". Contributions to the "distributorships" point out that fact.
So laughing up their sleeves while they take the proceeds, they rent a low-cost front office, put in cheap help to answer phones and sqander the donations on leisure trips, expensive cigars and models/escorts for their own personal pleasures.
*OR*
2) This company may be under the mis-understanding that it still has a chance of soliciting the funds required to acquire the technology to lend itself credibility. Their belief in success lies in sustained distributorship interest, and delusional thought. Since it takes two to tango, they must also think that they will still garner cooperation from the 3rd party group they wish to acquire, even though the 3rd party may not be interested.
We can be assured that even if the past officers of the company have been removed, their influence lives on in some way shape or form, and are a factor in its present existsnce.
*OR*
3) Although riddled with past blemishes in it existence, this company has legitimacy close to being within its grasp. To extend its reach a bit further and grab hold of the golden ring so to speak, they need to gather funds to acquire the technology they so desparately seek.
In the meantime, they still have to fuel the lawyers to address various class-actions, past bills and other financial hurdles that must be cleared prior to future successes in outside investment.
There are various keys to working through these problems:
1) Hire an experienced fund-raiser: Mr. Hanscomb fills this spot. He has been involved in past investment/fund raising ventures. He has experience in dealing with (schmoozing?) international/foreign interest.
2) Generate immediate cash: This is being done - selling distributorships.
I'm sure that there is part truth and part fantasy to the rumors we have been hearing (saudi, chineese interest). My guess, is that the interest is generated by Comparator, so people stop by to take a look. Once they determine the amount of baggage the company still carries, they back away. Comparator then plays this as "we are talking with investors from (fill in the blank). These rumors (passed on to market makers and brokers) get them trading activity, and a few more distributorships, which keeps the machine going. This lets them pay lawyers, and may be helping to make payments to 3rd party interest who hold keys to the technology.
My guess is that if they can keep the "machine" going long enough to work off some of their problems, they will see some firm interest that will take hold...i.e. a shell company with a load of baggage now becomes a (clean) shell company.
But the key to making this entire endeavor work is that they they HAVE to believe they have the ability (and committment) from the holder of the technology. That is what makes the whole attempt worthwhile. They must really believe they do, either though a negotiated contract, or by rational legal reasons, or else they wouldn't be sticking around so long.
Or conversely, they have no chance at any technology, and are just using the distributorships to pay off debts. Once the debts are gone, so are they...(?)
We shall see.
Regards,
Larry
Now that I've said this, they'll fold tomorrow ;)
|
