Casey, you have to realize TTRIF is run for the benefit of RB, not its shareholders. Interlocking companies, with a common director (guess who) continually make NOT at arms length transactions--to the detriment of TTRIF shareholders--IMO. Carefully read para 20, page 10 and 11 of the "Notes to the Consolidated Financial Statements" (1996 AR dated April 30,1997) entitled Related Party Transactions.
As a guide to what these "assignments" are worth--TTRIF paid a $1,200,000 refundable DEPOSIT to " a company controlled by a common director" (again, guess who). This DEPOSIT is obviously not the entire cost that TTRIF will incur to purchase the patent rights to "the thermophillic digestion technology in the marine culture and aquaculture industry". TTRIF actually bought the license right and included was the assignment of patents, making TTRIF the assignee rather than licensee.
Fifty percent of Brampton (which was supposedly worth $10,000,000 at the time) was sold in May '95 to that "company controlled by a common director" ( no need to guess who) for $100.00 Helluva bargain!! The company (Global) then LOANED $2,400,000 to Brampton--but Globals cost for 50% of Brampton was still $100--regardless of what money was loaned to Brampton--for loans have to be repaid. One year later, on April 30, 1996(end of fiscal year) TTRIF bought back from Global that 50% interest for $2,000,000 and was made assignee of the loan. Apparently, Brampton was expected to make lots of profit when RB sold 50% to himself, but when that profit failed to materialize, he sold it back to TTRIF. I wonder if either Richmond or Hamilton prove to be profitable if he will sell 50% to himself for $100?
Note also in last years AR, for some time TTRIF has been paying $8000 per month to lease the vacant lot (1 3/4 acres) upon which Richmond is being built. Eight thousand dollars a month to lease a vacant lot???? I would love to know who owns 11600 Twigg Place, Mitchell Is., Richmond, B.C.
On Yahoo, countless words are expended delving into the minutia of the TTRIF/TPP agreement, with virtually nothing said about what is revealed in TTRIF's annual reports. STUDY just the last 2 years' ARs and notices of annual shareholders meetings and I guarantee you will have a queasy, sinking feeling in the pit of your stomach if you are a shareholder. IMO, TTRIF is a fiefdom--you guess who is the ruler and who are the serfs. Apparently, shareholders can be royally screwed as long as it's reported as such in the QRs or ARs
Regards,
Gary |
