bob, from what I understand CHASE still has shares left.
What is troubling is that CHASE made a big profit from their sale of the joint venture back to ALYD and Bob Gruder gave them tradable shares of ALYD stock.
These shares, if they were done in the form of Reg. S. (which I assume they were), added instant dilution to the stock.
You have to remember that Reg. Shares don't come out of the float.
Here is what Chase said about this deal:
"The significant return on investment in such a short time frame was too good to refuse, as it has strengthen the Chase balance sheet significantly and will give a massive boost to the Group's plans for growth and flotation.
"There are two main reasons to float; to generate money for expansion and to give shareholders an exit route - we have the cash we need for the time being, but plans are still on course to float in 1998," said Chris McAuley. "The Alydaar deal is further evidence to the City of our ability to spot an opportunity, exploit the situation, and make money."
Link - ukbusinessnet.com
Well, it sure looks like Bob Gruder helped them "exploit" the situation and make money at the expense of ALYD shareholders.
I found this in the 10Q that was filed on 11/14/97
As of July 1, 1997, the Company acquired 100% of the shares of Alydaar
International, plc, a London-based company, for stock of the Company, assumption of net liabilities and forgiveness of debt for a total value of approximately $6.5 million.
sec.gov
$6.5 Million !! That is no small chunk of change.
I think there is more to this story than meets the eye. |
