John, I believe the correct answer is your ignorance (lack of knowledge) of what is required in a 10q filing. Should a company even elect to file 10q's. Not all companies do. 10q's are not mandatory for BB stocks, usually prepared in house (unaudited) and are usually just a thumbnail of the quarters activities.
What is irritating is how you and certain others on this board who have decided that this is not a legitimate company choose to use "selective" out of context quotes from the documents. If you really are trying to "educate" the innocent, then at least reference the whole quote. (I concede, you at least put a link to the whole filing)
Here is a complete quote from the document that references the part of the transaction that you claim is improper. Just what is improper about it?
Isn't it strange that if this was a scam company that they didn't just automatically place a value of $34,691,800 on the acquisition (the amount the prior owner claims he had in Baraka) rather then use the much smaller amount, until they can get a more detailed and accurate appraisal, as they state in the second paragraph?
As part of the acquisition, the Company signed an agreement with a bank
to obtain the release of the security interest granted in the bank's favor over
certain assets of Telenet and Baraka Intercom, Inc. In return, the Company
issued 1,005,000 shares of common stock to the bank pursuant to the bank's
rights as pledgee and issued an additional 20,000 shares of common stock to the
bank to be held by the bank (or its nominee) absolutely and beneficially. The
bank also received an assignment, by way of security, and all rights under a put
option in respect of the remaining 49% interest (not owned by the Company) in
the share capital of Telenet. Telenet, along with other entities, are joint
guarantors of debts of certain parties related to the former principal
shareholder of Telenet in the amount of $34,691,800. Finally, in connection with
this transaction, the Company issued 1,983,750 shares to an affiliate of the
former principal shareholder of Telenet.
The Company has assigned a nominal value to the assets purchased in
this acquisition. The Company intends to appraise the intellectual property and
assign an appropriate value as a result of the appraisal.
Art |
