CSG Inc. (fka CYSG)

[Penny Lover]

Etrade agreed to not charge but they take 2 weeks to receive. They were supposed to call me but have not. I guess I can't dissent unless they give me the cert in time. The deadline I hear is the 29th.

[paper123]

Scottrade, was anyone able to get the share certificates from their brokers?

[spivster]

Prior to this legislation, mergers and acquisitions required a unanimous vote in favor from the shareholders of the company. This allowed for just one dissenting shareholder to veto the merger or acquisition, even though it may have been in the best interest of the company. State legislation took away this right, but in turn, gave the shareholders the right to receive the cash payment for their shares instead.

http://www.investopedia.com/terms/d/dissenters-rights.asp

[FKA Booger]

Blocker told me in a text 6-9 months if we are lucky to even trade again. I fully expect to lose quite a bit of money from my original purchase into this BS company after they R/S it into oblivion. However, it will be a good stock to flip till the dilution machine kicks back in, so I'll be able to recoup my losses and make some money from my flips of the new stock.

[GeneS]

what does "qualified" mean?

[LexTrader]

About .0004 - .0006 per share, based on 3 mil + BV. That maybe be high depending on the debt. I got an email from Phil a few days ago, that was pretty positive on relisting in 120 days. Holding pat

[fenian32]

From the company.

Only qualified dissenters get an offer. Fair share value can be determined as follows:

your shares
----------- X After Closing BV (estimate it based on Proceeds)
5.6 Billion shares

[Radar02]

i think the excess shares should be spread out to the share holders accordingly to their count instead of distributing them to the officers. We are the losers here not management. Looks like stealing to me. Let GOD be the judge.

[Penny Lover]

Thanks GT,

I guess it all depends on what their offer is but I'd like to think around $.0005? Any other dissenters filing? Any idea what their offer price per share might be?

GLTA

[GonzoTrader]

You should call your broker, you have 20 days from receipt of notice. I received mine on 9/9.

In my final conversation with my Scottrade broker he said it is normally $500.00 to get the certificates, but he didn't think they could get them because the stock was revoked.

He also said that 9 times out of 10 you will lose if you don't like the offer and bring a court action.

You will have to decide if it's worth the fee plus the cost of an attorney to go to court.

[Penny Lover]

Does anyone know the deadline for filing dissenter's rights, how much the certificate costs through Etrade or any clue as TI what the offer may be?

Thanks in advance.

GLTA

[GonzoTrader]

I second that...

[fenian32]

"I'll gladly send you his texts from my phone so you can irrefutable proof we are all screwed."

Well we know the management aren't screwed, they ran the company into the ground and then awarded themselves whatever is left. They should be getting zero not a bonus.
Its obvious that us retail shareholders were used solely to funds there wages and bonuses.

[V63]

So do you think it's better not to keep them? I would value my shares at least at .0007

[GonzoTrader]

Is there an attorney on this board.

[GonzoTrader]

I just spoke to my Scottrade broker about getting the certificates for the shares.

All certificates are held by DTC, Depository Trust Corp, but not if they are revoked. They don't have them. If they were not revoked it would cost $200 to $400 just to get them.

He also said that he's never heard of a company requiring the certificates if you demand dissenter's rights.

He is going to investigate this further and call me back later today.

[LexTrader]

Well, go for it, and have a ball.

[GatorTex]

Renee Wednesday, September 11, 2013 9:41:50 AM
Re: GonzoTrader post# 41846 Post # of 42110

Regretably, Gonzo, I haven't read all of the current info on Cape, other than being aware of the company's asset sale.

I do know that Cape transformed to a private company once the CSYG stock registration was revoked.

Shareholders' only recourse was to sue the company so that any asset sale might have been assigned (in part) by the Court to CYSG shareholders. Shareholders in part or as a whole could still get an urgent injunction to put Cape's asset sale or the proceeds of the sale on HOLD until a Court can hear shareholder arguments.

Unless CEO Toms covenants by public notice to assign some of the asset sale proceeds to CYSG shareholders I would personally get to a Court in Cape's domain jurisdiction and ask for that injunction.

Convey that to Toms.

[GatorTex]

Read Renee's post about filing an injunction to stop the transaction. If you don't choose to dissent and fight them in court over the fair value, once that transaction goes through your cash is gone.

As it's set up now, none of the asset proceeds will go to shareholders. Big shock.

[puckhead]

When the company decided to not file returns willfully allowing itself to become De-listed I assumed at that point my investment was gone.
What amazes me is how easy it is for a SCAM to be executed in this market.

There has to be some liability in just ducking fiduciary responsibilities and essentially walking away with investors cash.

Somebody somehow have any litigant muscle?

Could a class action stop the transaction ahead.....or at least delay it....maybe as long as they have been sitting on our investment.

[FKA Booger]

I sent a text the other day asking Blocker if he would clarify a couple things for me. He responded today.

Here's what he said:

Yes, the LOI I mentioned is with a separate company 'as an acquisition'. Esko was a sale of the Group's assets. It would not be a reverse merger. At this point that is all the info I can give in addition to what was in the notice to shareholders.

I had asked him earlier if I would have value in my shares greater than .0005.

Here's what he had to say about that:

The 'expectation' is yet, but not for 6-9 months.

Before anyone starts dreaming they are going to make tons of cash with Cape. Blocker's answers to my questions pretty much squash those hopes. Could Cape trade in the pennies if trading again. Yes, but highly unlikely given the value of the 'new company.' It's fun to speculate sometimes, but then reality sets in and you have to realize you'll be lucky to get a return on your initial investment. The 'new company' will not have a great value. You can almost guarantee a RS of about 11:1, which trading at .0001 would give you a value of your original investment pennies on the dollar.

If anyone wants to refute Blocker's text to me, then send me your email address and I'll gladly send you his texts from my phone so you can irrefutable proof we are all screwed.

[GatorTex]

Exactly, so IF you follow all the instructions, including sending the certificates, then they get to decide on fair market value and if you balk, you get the honor of taking them to court.

They know the % of bagholders willing to go through all of that is low, so you're encouraged to sit and wait. And then the retail shareholders will be reverse split into oblivion and get $0. All of this simply means more money for the crooks, eventually.

Penny scam 101.

[lucky, mydog]

which means you have to pull certs on a revoked company? and then send them away? oh my.

[GonzoTrader]

I thought it was that easy too, but within 20 days after you demand dissenter's rights you also have to send them the certificates for your shares and then you get the company balance sheet. They'll send your certificates back.
It can take a long time to get your money.

[daretodream]

It doesn't sound to difficult.. You send in a written request, they send you an offer... Now if you don't like the offer then yes, then your talking more time and possible lawyer/court.

[GatorTex]

Bingo. They hope you don't dissent, that's why they've made it as difficult as possible with lots of legal outs.

Then when you hold, they'll reverse split your common shares into oblivion. Voila, you get to hold the bag again.

[speycastrookie]

short version: CYSG didn't turn in audited financials and was delisted. (arguably to resist dilution by a creditor who was manipulating the markets). The company has negotiated a settlement with the major creditor and has sold all assets to pay off the creditor and some other debt. They have reported the sale to us the shareholders and are looking for the shareholders to decide if they want to stay with the company while they attempt to merge/take over another company and get relisted or dissent and have a buy out at current fair valuation.

The shareholders on this board are minority shareholders and are trying to speculate on a number of issues
1. will the company be able to realist
2. will the company gain a new product line before we all get old or they bonus the profits of the sale into their pockets
3. is the dissent the best option for each of us
4. will the predicted reverse split cause us to lose all of the value of our shares (will the new shares proportionally or better increase in value above the dissent)

I think that is the core of it.

[Thenewguy5886]

Hey All!

I bought a bunch of this stock a few years back and like the rest of you watched it plummet and die. I have been receiving emails about stock holder information but I'm having a hard time making out what it all means. I owe quite a few shares but have relativley little money invested but i see on her about people saying they are gonna hold on and wait it out. What is going on with this company? can someone put it out there without all the lawyer lingo?

Thanks,
The New Guy

[FKA Booger]

How about we bring something constructive to the board rather than try and ridicule someone that disagrees with you. Quite frankly, I haven't seen anyone in support of the company bring nothing more than fantasy to the board. If I want fantasy, then I'll go to Orlando and hang out with Mickey

[LexTrader]

That would be my question.

[daretodream]

So have you mailed your request for fair value?

[fenian32]

I agree and while the R/S will almost wipe us retail shareholders out and crystallize the losses we already have, management due to their massive unwarranted bonuses that they have given themselves have ensured that they are the ones who will benefit out of any future upside.

I see the management of this company as no better that any of the other pinkie scams out there. The out come for the retail shareholder has been no different.

[FKA Booger]

Phil Blocker specifically told me in a text they were going to 'acquire' a company and had already signed a LOI

[LexTrader]

Booger, I belive that Cape will not buy any co., rather a private co will seek to RM into Cape, after reinstatement. I also think, if there is a RS (most likely), they will reduce the AS at the same ratio, to bring the SS inline with a newly formed co. Cape will be a very attractive RM candidate, to allow a private co to move into. JMO

[FKA Booger]

I highly suspect a R/S coming. I believe they will more than likely keep the AS the same, but decrease the OS.

Here's a couple reasons why I'm thinking this. They accepted a rather large amount of shares in this Esko deal as a bonus. That is a signal to me for two things. One, they intend on trading this stock again and two, they intend for a rather large R/S.

Also, the deal with Esko was for $3.8 million. $600k of it is tied up in escrow, so that brings it to $3.2. They have to maintain a minimum balance of $1.3 million for a period of 39 months. Ribotsky is paid $350k to get rid of him. Brad Leonard is given $150k for back pay and bonuses. That leaves a balance of $1.4 million to play with. If Cape is to 'acquire' another company, then that must mean this other company is worth, at most, $1.4 million.

Working with only the facts with what we know right now, the PPS, once trading, would be very low with the current SS. Yes, it could and probably would go up, at least for a while, but then the PPS would begin to out-value the company. Such trading is only temporary as the PPS generally will fall back to actual company value. The new company could grow, yes, but that is just speculation and I'm working with just the facts right now.

Here's another question that has been rattling around in my head. After Cape acquries this new company, how will it be setup? Will Cape continue to be a 'holding company', as was before, with the new company a subsidiary, or will the new company take over Cape? Meaning, would the current BOD's resign and the officers of the new company take full charge?

The plus of this is we finally get some hint of this actually trading again. The bad news is we may never even have a chance to, in the very least, get our original investment back out of this.

[daretodream]

So who is or has sent in there request for 'Fair Value' and would you be kind enough to let us know what you receive back from them as an offer.

I do wish everyone the best on whatever decision you make.. I do feel staying is going to be the biggest return.

[LexTrader]

Correct Wardo.

[Wardo]

I would imagine that a shareholder who was among the 80% who voted for selling assets to Esko cannot turn around and dissent to that decision.

[onlytimeposting]

So my printer is out of paper and studying the document on the computer is irritating so to be honest I mainly skimmed it. I got to say this has been an interesting experience following it all the past few years.

Are the recent shares voted to company officers restricted in any way? If they were that would be a good forward-looking clue about the shell. (I did not see that they were but like I said I just skimmed it until I can print it hardcopy), or can they immediately exercise dissenter's rights with them and get paid?


Also I was wondering this. Do they have to offer everyone the same buyout price? I would assume yes but with all the talk of it becoming a private company once the delisting happened maybe the rules change compared to a public one?

[daretodream]

The link I posted bypasses the login.

[FKA Booger]

No login info to the transfer agent?

[LexTrader]

Received the packet in the mail today. Nothing different from the proxy link the other day.

[FKA Booger]

Without having to dig through old filings, does anyone remember how many shares Toms and Biermann had prior to the new bonus of shares they received recently?

[LexTrader]

ST told me they sent it out on the 9th, so it should be here NLT Mon.

[GonzoTrader]

Nice pic...I just noticed it.

[FKA Booger]

Anyone receive their packet with user name and password to log into the transfer agent website?

[daretodream]

Agreed!

[LexTrader]

OK dream, I didn't realize you had asked about the audited fins. if they have not done anything, 2-3 months is a rather short amount of time to get them completed. So I think they are already done or close to being so. imo

[daretodream]

Lex... I asked about the financials and this is what I got from Phil...

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=91957154

[Rich]

Okay, thanks Deb!