Janice, the point you made regarding what was posted, and then their assertions that it was altered, have now been proven to be lies. It was only done to mislead investors.
It has never been argued that the company and its cozy relationship with companies owned by the officers, does not protect individual shareholders from gauging should the company become successful.
For consideration is this set up:
The Company currently has numerous related party transactions and
relationships. The Company's President, Treasurer and CEO and its Chairman are also the owners of its primary supplier of phytochemical products. The Company's President and CEO is also the owner of a specialized equipment distributor from whom the Company purchased much of its laboratory equipment. HOW MANY OTHER CUSTOMERS DOES HE HAVE? HOW LONG HAS IT BEEN IN BUSINESS? IS THIS THE BEST "DEAL" THE COMPANY COULD MAKE? IT IS AFTER ALL A PUBLIC COMPANY.
In addition, the Company entered into an agreement with another related party (an entity owned by the Company's Chairman and his family) wherein the Company was licensed to use certain proprietary information in producing and marketing homeopathic products. In exchange for this licensing, the Company has issued approximately 5,000,000 shares of its restricted Common Stock and agreed to pay $8,000 per month for a minimum of 5 years. See Notes 14 and 16
for details of this transaction. There are also significant amounts due to officers and employees of the Company. Summarized transactions for the year ended December 31, 1997 follow (amounts are rounded):
Inventory Purchased from Related Party $ 240,000
Equipment and Supplies Purchases from
Related Party 30,000
Receivable from Related Party 62,400
Employee Advances 2,300
Accounts Payable to Related Parties 185,100
Note Payable to Related Party (Note 11) 6,000
Note 4: Reliance on Single Supplier
The related party phytochemical product supplier discussed in Note 3 is the sole source of the Company's primary raw materials. Further, this supplier is located in Brazil and is dependent on the Brazilian government for its authority to export its products.
The company points out how they officers are not paid... really?
It seems that they are, it just doesn't appear on the payroll. <g> |
