I wrote:
By my reading, the company (HITT) received an IOU, due in 12 months, for $10 million. In exchange, they issued 2 million shares. As a good faith deposit, a postage stamp collection was placed under the care of a third party. No claim was made that the postage stamp collection was worth $10 million.
It looks like I typed too soon. Nearly at the bottom of the 10-K I found this:
<PAGE> 82
Letter of Intent
The Life Foundation Trust
April 15, 1999
Page 2.
The total of $20 million, consisting of the subscription and
acquisition price of $10 million, and the $10 million for the
purchase of Local City Editions to be acquired and booked over
the next 12 months, will be unconditionally and irrevocably paid
in full within one (1) year, the payment of which is secured by
LFT granting a security interest and lien in LFT's undivided
interest in the collection of Aden stamps presently held in
safekeeping with Day & Meyer, Murray & Young Corp., 1166 Second
Avenue at 61st Street, New York, NY 10021, (the "Asset").
The Asset is insured as to all risks of physical loss and/or
damage for $20 million through Lambert Fenchurch Specialties
Group Limited, London, with a certain underwriter at Lloyd's,
London, UK, per Contract No: NA0100098, Certificate No:
NA0112598. The premium for the 12 months ending December 3, 1999
of $70,000 has been paid in full. The Asset has been appraised
for $50 million (catalog value).
- Daniel |
