Everyone:
Here is an email from Dave Johnson. I found it to be true to form and from the heart: The truth,
We must ensure we post only that which is truthful and verifiable, or that which is clearly our opinion and not necessarily a proven fact. I hate to say this, but it would be unfair to the management at Eutro to engage in hyperbole or untruth.
The facts are these:
1. based on information released by the company, and by information
posted on various boards, we investors could logically believe that Eutro was seeking a shares resolution that could effectively lower the shares float by some 50 million shares.
2. Based on information released by the company and by information
posted on various message boards, we investors could logically believe that Eutro was financially sound and that their prospects were improving.
3. Based on information that was attributed to the company
spokespersons, we investors could logically believe that at least one Eutro client IPO is imminent.
4. Based on a company press release, we investors could logically
believe that Eutro was finalizing the purchase of interest in the nightclub Ivy.
5. That the company at no time in the recent past has mentioned any
financial situation that would require the authorization of up to 400 million additional shares into the float, and that reduction of the float is an investor concern that has been explicitly addressed in public forum on numerous
occasions.
6. That, based on the company's past history and on current investor
concerns, a large increase in the float would reasonably be expected to have a devastating, long-term effect on the share price. Such a collapse in the share price would reasonably be expected to negate the benefit of a float increase to a reputable company.
7. That such an action would reasonably be damaging to the interest of
the shareholders, with no apparent benefit to anyone.
8. That against all reasonable investor expectations, Eutro authorized
a float increase of up to 400 million shares, and that they did so without consulting or notifying their shareholders.
These are the facts. Be careful if you step outside them.
Regarding any legal action by Eutro against anyone who posts anything
concerning what happened to us: Eutro would be unwise to do so. If
they are a shell company that is engaging in fraud, then they open up
the possibility of an investigation of every message that was posted on
every thread on the internet. If it were discovered that misleading
messages were posted by Eutro insiders, that individual would be open to
all manner of legal actions from the government and from the owners of
those message boards. If it could be proved that any private individual
made misleading posts, the effect would be similar.
If Eutro is a reputable company, then they made a grave misjudgement
by authorizing a large float increase. I'm sure they realize this now
and will need to rebuild investor trust, and I doubt they expected such
a heavy backlash. They cannot regain our trust if they come after a
bunch of individual investors who have a reasonable right to be really
pissed off. They will need to regain our public support instead of
privately bullying us. Anyone who does get bullied can certainly post
it publicly and that would not go well for Eutro. Their best possible
damage control, if they are reputable, is to remain calm and reassuring
in public, while privately they do whatever it takes to get Freedom
Medical an honest-to-God IPO, and damn fast. They need to do so in
order to shore up their image. The last thing Eutro would want is to
invite outside scrutiny of their press releases, unless those releases
are provable facts.
I intend to keep these recent events alive because I believe that
public awareness of what happened to us is important. I believe it
provides a valuable lesson to other investors. Eutro does not have the
right to waste my investment dollars. When they accepted my money,
they did so with the unwritten but commonly understood agreement to use
it wisely. That's what an investment is: the employment of another's
assets in a way that is intended to be mutually beneficial. I will
accept no less from those who I entrust with my investment dollars.
Regards to all, and I wish us all better luck next time. Dave Johnson
Thank you Dave,
André |
