Legal Status Still Pending
The latest 10Q was released yesterday.
"The MOU also provides that the Company enter into Debt Settlement Agreements with certain of its existing creditors, whereby the Company will issue shares of its common stock in order to settle certain historical debt. It is anticipated that the shares will be issued at a deemed value of $0.50 per share pursuant to the Debt Settlement Agreements."
The reverse merger as I understand it is still in the works. I don't understand the legalities, but I think all the former debts to former insiders that did work on loan in the past will get paid in shares. And whatever other debts that were not forgiven. So, that's like 5 million shares to my understanding to satisfy all debt and then there would have to be at least another 15 million-share issuance for Caie Foods when it all comes out in the shake. The new issuance if/when it happens (and I believe it will) will be restricted for a year. The float will be what it is currently, which is miniscule. There was some talk in there somewhere about negotiations and the inability so far to come to agreement.
Basically, I'm thinking Caie Foods Is saying, "how much do we have to pay these jerks off? It's not our problems, but it's cheaper than going public by IPO." My understanding is that there are plenty of empty shells out there that are clean. I've seen a website with some for sale at around $40,000 average asking price. Don't play games with these jerks, Caie. They need you more than you need them. I hit the jackpot with another empty shell, HLIX. I don't need this. This is just icing on a potential cake. Play hard ball, Caie!
It will be interesting and another learning experience. Obviously, there is more than one legal path to erase these debts and be acquired (legalese for reverse merger). I don't understand the legalities of it. Don't think I need to either. I'm just glad it's not a name change and somebody taking all the former baggage. I've seen that before, and that's no good. CSAX for example. Losers! I don't have any bad feelings about this IFF it goes through as planned. And I think it will. Eventually.
