MyGo Games Holding Co. (fka MYGG)

[iPickle]

Interesting article about MyGO:


the Titanic Ten

In this article, I'll argue shares in all of these companies, referred to them as the Titanic Ten for the remainder of this article, are in fact worthless.

Yet, in 2014, the inner circle of debt holders seemed to have temporarily lost control of the company when MYGG, through a share exchange, bought another gaming development company called Great Outdoors. In this transaction, the owner of Great Outdoors, Daniel Hammett, obtained a 71% majority in MYGG and became the new CEO.

There was one problem though. Hammett wasn't an insider: he has a strong background in the gaming industry, having worked at, among others, Activision (NASDAQ:ATVI) and Vivendi Universal. Hammett must have quickly realized there was something terribly wrong with the balance sheet of the company he had just become CEO of.

In July 2014, MYGG filed a 10-Q with the SEC that contained the following remarkable paragraph:




Source: 10-Q SEC filing MyGo Games Holding

Hammett appears to have tried to cut the ties between MYGG and Kathleen Delaney by openly disputing the amounts owed. He must have realized MYGG would be doomed to fail, unless the toxic convertible debt would be renegotiated.

Two months later, Hammett was gone, after he was accused by the company of breaching MYGG's Code of Business and Ethical Conduct. In October, Hammett reached a settlement with MYGG with regards to his departure, which included returning his stake.

Hammett was quickly replaced by Jonathan Pina. With Pina being named the new CEO, everything seems to have gone back to normal at MYGG. Pina has, as we've learnt to expect, no relevant working experience in the gaming industry, and previously served as the CEO of FTTN, another Titanic Ten Company. Not surprisingly MYGG never did a follow up on its dispute of the amount it owed to KMDA and other counterparties. It's also no surprise those toxic debts are still present today on MYGG's balance sheet.

full article here:

http://seekingalpha.com/article/3488956-the-titanic-ten-exposing-10-related-otc-stocks?page=2