I'm not an expert, but I think a halt is usually a short term thing they use for investigation after they suspect something is wrong. The suspension is a longer time frame used after they find a specific problem that needs to be cleaned up. Perhaps someone out there can shed some more light.
Looking back to what I remember about the past options and so on, it is likely the paperwork wasn't done correctly. In spring/summer of 97 they announced options/financing, and didn't announce the completion. I myself participated with a small amount that summer at 15 cents. They did not announce it was completed, so I think they didn't sell all they wanted to. Then they announced in early 98 the CD deal, and announced the 2:1 consolidation, and a bunch more options and private placements. In subsequent announcements, they cancelled the consolidation, and included a statement on options and PP's. I thought it was a re-statement of the already announced options, but it wasn't clear. I also know Doug was trying to raise money to pay lawyers at that time to put the CD deal together.
If you recall, a month ago or so, they announced that the "previously announced private placements were cancelled". Doug had talked to me, and had informed me that they were going to roll all the past 1997 PPs into the current 1998 PP's. I was not alarmed, it kind of made sense to me. Doug was running on a shoestring budget, and wanted to reduce legal fees by having it all written at once.
I also heard Doug was paying for some of those legal fees with options, since there was no money in the company. That is where some of the selling pressure must have been coming from over the summer, and if they weren't properly accounted for, where the VSE is looking now.
Looking back, I can only imagine the complicated mess that was created on his books. Don't forget, the money received in 1997 had to be accounted for over the year-end last November.
If these suspicions are correct, I can see why and where Doug got himself in trouble. I marvel that he was able to put as much of this together as he did with the little bit of money that he had. The leases he negotiated were brilliant. It took a long time, but he has taken us to the cusp of this huge lucrative opportunity.
I can blame him for not doing those PPs and options per the rules of the VSE. But from what I have seen so far, it was not with the intent to defraud the shareholders, but to keep the deal going for the company. For his own benefit, but also ours. Again, we haven't seen the pump and dump that would indicate the intentional fraud of shareholders.
Unless the VSE comes back with evidence to show fraud, Doug still has my full support. If there is fraud, I will lead the pack to have Doug removed from the company. Me and my friends now have enough shares to make a difference in a vote. But I will not pre-judge Doug's problems without the facts, and I will not run for the exit when it opens for trading.
I have maintained my investment in this company because I see the little things that tell me this is a real deal. Lawrie couldn't predict a news release date to save his life, but I don't think he nor Doug is the slick promotor that could have strung me along so long.
I hope I haven't rambled too much, but these are my opinions, and I urge everyone to wait for the company and VSE to clarify the situation.
Ted |
