Ramads take on today's filing. It was well known MTIA did not like the Goldbergs as well as the Besser group. If their is a deal in the works it was contigent the Goldbergs had to resign. Any one funding them would want to have control of the board. Did they resign to avoid any law suit if an outsider with major position such as MTIA will fund echo now that they resigned. If they did not resign contingent to get funding the Goldbergs would most likely be looking at legal action against them. As directors they have the fiduciary responsibility to act in the best interest to the shareholders. Echo's current financial situation is very bleak so its very possible they resigned knowing echo has very little time to keep the doors open wherebye Alan can strike a deal
What is odd in the filing is alan gets 500,000 options and 100,000 shares at 16 cents that are vested immediately. Their is no contingency to raise funds to get both the options and the shares. That equals about 5% of the total float. Unheard off. If he stuck a deal yes he would deserve it and it is customary to have the options to be vested in a staggered time period such as 25% vested in 3 months, 25% in 6 months 25% in 9 months, and 25% 1 year.
One scenario is if an interested party proposed to merge Echo into another company and the share holders would get 1 share of the new company for every 10 shares they own of echo alan would still receive 60,000 shares of the new company.I could think of one entity that would propose such a deal.
The best outcome for the shareholders is that Alan has now more flexibility with MTIA now that the Goldbergs are gone. I do not believe that the new board if funded would give him such a sweet heart package as voted to him by the old board. The stock action told us nothing. Very shortly everyone will know how this will end. Will echo survive on their own or merge into another company, or close the doors.
Hoping the shareholders will come out whole, and not have echo report the shareholders will still have some equity by merging and did not have to file bankruptcy and have nothing. The above is Ramads take away from today's release.
