The story on the law suit
I talked to Ron Spire, SLS Chairman, today.
He explained the full story on the law suit.
It seems that a while back SLS contracted with a bridge
financing firm to get $300,000 worth of bridge financing.
This firm lined up some investors to provide the financing.
However, SLS only got $120,000 worth of the $300,000 that
they were promised. The other money was appropriated by
the person who did the deal at the bridge financing firm.
SLS has set aside the $120,000 that they got, with interest,
and offered to give it back to the investors, but they
of course want the whole $300,000. SLS doesn't want to
pay for money that it never received. So, all sides have
agreed that the best thing to do is to get it into court so
that SLS can prove in a legal setting that it did not get
the full amount of money, and then the investors can go after
the bridge financing firm and the person who absconded
with the money.
This is in no way related to the ballasts or a shareholder
lawsuit or anything like that. It is really the result
of a bad apple at the bridge financing firm.
It does not appear that it will have a large financial effect
on SLS, since they have already set aside the money, and can
prove that they did not receive the full amount promised.
Aside:
It has been a while since I last posted. I've just moved
in to a new house and have been pretty busy. Ron Spire
was also very enthusiastic about the future of SLS.
I will summarize his thoughts in this area next week.
For now, its off to paint. I didn't want the law suit
thing to be hanging out there without explanation. |
