Sarissa Resources Inc (SRSR)

[es1]

bulk of the fund was Dan's own money
Thats a point that most haven't considered!

What most are not understanding is that the instant the money went into the fund it was no longer Dans. It belonged to the fund.

Retirement funds are not just bank accounts for the trustee of the fund. They are not allowed to just use the money any way they want.

The trustee can invest it for sure and invest it however he likes but when someone who has money in that fund wants their money you hand it over right now.
The trustee is not allowed to let the fund become illiquid.

Dan did. sort of

Dan could have cashed in the shares and given the money to the person but he decided he would buy the shares in a PP and so he had certs which cost more to cash in than they are worth.
So to Dan they were illiquid because he did not want to lose the money to cash them in.
He would have lost 50% right off the start. Then when the 11M shares started to hit the market the PPS would drop and Dan would be looking at a 75% or more loss on the investment.
Most might be Dans but do you think he had 75% of the money as his own?

That is what the problem is.

It does not matter what the PPS is. They want their money and Dan MUST give it to them. If that means cashing in 11M shares and taking a loss then that is what he needs to do.

I am sure he tried to talk the guy into waiting but the list of Scotts fails probably got the guy motivated to get out now while he could. So he sued.

Now the suit has a life of its own and we can only guess where it will go.