This is my opinion, and my opinion only, but I think DF-144 is DEAD. Gone, buried, taking a dirt nap, departed, deceased, disappeared, finito, history, O-V-E-R!
I don't think it was ever theirs (Fisher's or Spriggs') to bring to the bargaining table in the first place, and they misrepresented themselves to the Midland board and to the shareholders throughout the entire ordeal. Was the product for real? I think so. Did it belong to Arcon? I doubt it, but that is for a court to determine. (Arcon claimed to have "worldwide patents", whatever those are, on it, which is where I think the material misrepresentation lies)
A LITTLE TRIP INTO DAN'S WORLD...
Now this is purely hypothetical on my part, but did anyone think that maybe Fisher knew that the "snowball of deception" was about to come to a crashing demise anyway, so he took what he could get and he ran? If Exxon wanted to test the product, I am sure they would have asked for clearance on it, which thusfar people have been unable to produce. It would have led Exxon to the guy in Kentucky, Spriggs would have resigned from Arcon, and Spriggs and the guy in Kentucky would have cut a deal with Exxon leaving Fisher out in the cold, having to answer to Midland as well as Novagaz shareholders.
Rather than do that, why not make a news release, based on true fact (Exxon did indeed request a sample, and did not deny that), call everyone you know and run the stock up, convert shares, take the money and run off to the Bahamas? Fisher gets the money, his good pal Spriggs is clear to cut a deal with anyone, and an empty shell with no assets can decide how much money they can raise to try and fight them.
What I don't think he counted on is the resolve of the shareholders, and the still very favorable stock structure of the Midland. I may be wrong, but the way I understand it is that the development of the shareholder's trust will free up the shell for other deals to come in. While it is not a very favorable metaphor, I think of the trust as a "garbage can" of sorts, to keep this whole Arcon mess so that Midland can be free to persue other options. With the shareholder's trust in place, a new company considering coming into Midland could be more comfortable in the fact that they will not be active in the legal mess in going after Fisher.
Were the shareholders of Midland "screwed" by Fisher? yes, definitely, and not even kissed. Do we stand to get anything back by the trust? Possibly, remains to be seen. Are the shareholders the only ones who benefit from the trust? No, the company benefits as well, as the trust separates the Arcon mess from any company considering coming in.
Is there any particular reason to buy, sell, or hold this stock? That is entirely up to the investor, after knowing ALL of the facts and doing their own DD, and weighing the information against their own financial goals and risk.
Sorry if I am rambling, that it just the way I see it.
:-)
Binder |
