Calissio Resources Group Inc (CRGP)

[janice shell]

It seems to me that COR began with an incorrect hypothesis. It thought CRGP had deliberately planned the dividend screwup because it'd found a way to profit from it. At the beginning, COR believed Calissio had allowed the massive conversions by Nobilis, Beaufort, and Macallan because it intended to gain control of that stock--either by buying it as part of the stock repurchase program, or by having unnamed nominees buy it--and then collect the dividends on it. Dividends that should not have been paid on any stock issued after the record date.

COR's belief in this theory was probably reinforced by the suspicious behavior of "Adam Carter", who abruptly disappeared, and let Calissio default. Unfortunately, that behavior left COR stuck with trying to prove its hypothesis, and that didn't go very well.

In my view, each new strategy was weaker than the last. And unless there's something in the sealed documents that would come as a surprise to us, that original hypothesis was just wrong. Though what Calissio did was incompetent and shady, it wasn't out to get COR or Alpine. Probably it should have made sure DTCC knew about the gigantic new issuances; obviously it didn't do that. But given the amount of money it originally calculated would be needed to pay the dividend, it seems not to have expected the Nobilis, Beaufort, and Macallan stock to be eligible for it.

But COR lost money anyway, and for nearly a year and a half it's been trying to get it back, trying whatever legal tactics its attorneys come up with.

At this point, I have no idea what Strom will do; he's probably sick and tired of the whole thing.