President and CEO Anderson;
With regards to T.L. Phipps, the last 10QSB (Aug 20, '97) said that on May 15, 1997, CVIA signed a definitive agreement to acquire 100% of the common stock of T.L.Phipps & Company in exchange for 750,000 shares of CVIA. In anticipation of closing the transaction, the Company advanced approximately $450,000 to certain creditors of Phipps and obligated itself to pay certain other costs in connection with the transaction. The deal never closed and in the latest PR, it says CVIA is only a 25% owner of Phipps.
sec.gov
So, what happened to the 750k shares issued to Terry Phipps and the $450k advance?
Also, it states there were certain inaccurate representations by Phipps relating to accounts receivable of T.L. Phipps & Co. and that the production studio of T.L. Phipps & Co. had been closed, excess equipment sold, and the employees of the Company terminated (blah blah blah...)
Now it appears that Terry has been holding out on CVIA (or should I say Jack and Pat) by "holding the proprietary rights of new technology that has the potential of redefining the use of CD Roms". How was it that in the last 12 months Terry has been able to build up his facilities, hire a staff and have negotiations and contracts on hand?
biz.yahoo.com
Either Terry is very shrewd and hid this from Jack knowing he had something special he wanted to protect and was betting CVIA would cease to exist thus disassociating T.L. Phipps with CVIA...
OR
the new technology is not really there and he put on a show for y'all.
I, for one, was always led to believe T.L. Phipps was a non-factor in the CVIA equation and so I would like to learn about your first impressions on this operation, its potential, and what really happened.
I'm sure as CVIA gets more publicity, past filings will be scrutinized and compared to newly released info and so I believe this needs to be addressed.
Take your time on a response...thanks,
GJC
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