Wednesday, December 17, 2014 6:05:37 PM
It was clear from the minute that the CEO provided his first loan on his own terms that that act could eventually create a conflict between him and all of the rest of the company's creditors....and even its shareholders. For example:
We have read in sequential filings that "....the Company has committed to purchase certain pieces of key machinery from vendors related to the future expansion of its operations. In addition to the payments made to these vendors classified as deposits on assets, the Company will be required to pay approximately $495,000 upon the delivery of these assets." It's probably a safe guess that the machinery in question has been specifically fabricated for P2O versus stuff from the shelf that they can just sell to the next guy. Those circumstances could justify a civil claim. (Besides that, per the last filing the company has $7 million in liabilities already on the books.)
The security agreement that you refer to makes it an exercise in futility for that party or any creditor to file an involuntary Chapter 11 petition. We'll have to see if any creditor/creditors instead try to get what is due them in a civil suit(s). That might motivate Heddle as CEO to file a voluntary petition in order to protect the company assets....which would be an act taken in his own personal interest. Hence the conflict.
If no source of revenue develops and no source of funding appears out of the mist there is zero doubt that one of the above scenarios will inevitably present itself.
ps. We've been seeing this for what, a year and a half?
"As of the date of this report, the Company lacked the working capital or access to bank credit to make these repairs." It appeared again in the 10-Q filed on 11/14.
A week after that filing Heddle provided $1M through his company, Heddle Marine, which has an old, open agreement with this company. No mention has been made of applying some of those funds to the needed repairs. In fact, 5 days later the CEO issued a Letter to Shareholders that suggested that those repairs were no longer on the company's to-do list, funding or not:
"In light of the company’s exclusive focus on completing sales and licensing of our processors, we have temporarily suspended our plastic processing and fuel production operations at the Niagara Falls site."
Shareholders should gain some comfort in the fact that the company isn't obligated to tell them what is really going on today for another three months or so....unless something that Mr. Heddle feels is important happens in the meantime.
"I ated the purple berries"
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM