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With about only 130,000 to 150,000 shares trading on average daily over the last 5 days, a buy or sell order of 1 million shares will most likely shoot the stock up or cause it to crater respectively.
Those that talk a good game are those that talk about VLDI being a $44-50.00 per share stock. Other talk about the facts that they are out of money and apparently running out of resources to keep VLDI going as an operating company.
Yes, VLDI is worthless to most investors, except those that still believe Bruce can pull a rabbit out of his hat, other than that it has potential as a future shell company for another rinse and repeat.
Any company that can not produce ongoing revenue after 20 years of failure to launch isn't worth much. If that ever changes which is highly unlikely it may have some value. Yes without a revenue producing product after 20 years and a negative book value of about 5 M in its present state it is worthless.
Here are some interesting default provisions:
The convertible promissory notes contain penalty provisions relating to events of default, pursuant to which the Company could be required not only to pay interest at the rate of 22% following such an event, but also to pay immediately 150% of the principal outstanding plus accrued interest and penalty interest; alternatively, the Company could be required, at the discretion of the holder, to issue stock in satisfaction of the value determined under such penalty provisions, at the rate of conversion in effect at such time as the holder so elects. In addition to non-payment of the note principal and interest at maturity or failure to transfer stock on receipt of a notice of conversion from the holder, events of default include making an assignment or appointment of a receiver or trustee, ceasing operations, liquidating assets or entering into bankruptcy proceedings; certain money judgments filed against the Company; breach of covenants, representations or warranties under the note; delisting of the Company’s stock or failure to comply with the exchange act; failure to maintain property or rights which are necessary to the Company’s business; certain restatements of the Company’s financial statements as filed with the SEC during the preceding two years; effectuating a reverse stock split without first providing the holder with 20 days’ notice of such occurrence; replacing the Company’s transfer agent without first providing to the successor transfer agent, the necessary instructions to effect a transfer of stock to the holder pursuant to the terms of the note.
That is probably true and that is why a bankruptcy hasn't happen.
VLDI can be put into bankruptcy any day of the week, since Senior Convertible Notes have been in default since 2008.
The Company failed to settle certain of its 10% senior convertible notes plus accrued interest thereon when they matured on various dates between October 1, 2008 and December 31, 2017. At September 30, 2018, a significant portion of these notes remained in default for non-payment. As a result of these non-payment defaults, all of the 10% senior convertible notes are in default at September 30, 2018, in accordance with the default provisions of the notes, and consequently are payable on demand. Interest is accrued at the coupon rate on all notes outstanding past the maturity date.
Here is something to consider:
What is a Consent to Action Without Meeting?
A Shareholders' Consent to Action Without Meeting, or a consent resolution, is a written statement that describes and validates a course of action taken by the shareholders of a particular corporation without a meeting having to take place between directors and/or shareholders.
Bear in mind that a meeting does not necessarily mean a face-to-face meeting nowadays when the bylaws of many corporations authorize shareholders' meetings to be held via telephone or video conferencing. A consent resolution dispenses with the requirement for any form of meeting.
Many smaller companies substitute special meetings with consent resolutions because it saves time by not having to schedule meetings. These consent forms are very useful, especially for minor matters where having to call a formal meeting would waste time and resources.
I believe that is what he is doing right now, forcing a call by the noteholders in default and then preferred A's are in the best position to take over the company.
If the shareholders were successful in forcing the first annual shareholders meeting probably in 20 years Bruce would have to show up because he is the only executive. Otherwise the shareholders simply could take over the company management by voting someone new in his position.
BTW Alla Pasternack should be filing her SC 13G around February 14. As of April 2, 2018 her ownership was down to 8.5% from YE December 2017 of 9.99%.
The members of the PF own or control over 210 million shares of VLDI
One way to keep costs down is a shareholders meeting via teleconferencing:
Nevada amended NRS 78.320 in 1991 to provide that unless otherwise restricted by the certificate of incorporation or bylaws, stockholders could participate in a meeting of stockholders by means of a telephone conference or similar method of communication by which all persons participating in the meeting can hear each other. 1991 Nev. Stat. Ch. 442 § 108. This statute remained nearly unchanged until 2011 when the legislature amended the statute to require that all stockholders be able to "communicate simultaneously or sequentially" rather than "hear each other". 2011 Nev. Ch. 168 § 3. This change didn't last very long, for the legislature in 2013 jettisoned the requirement in favor of a requirement that the corporation implement "reasonable measures" to: (1) Verify the identity of each person participating through such means as a stockholder; and (2) provide the stockholders a reasonable opportunity to participate in the meeting and to vote on matters submitted to the stockholders, including an opportunity to communicate, and to read or hear the proceedings of the meetings in a substantially concurrent manner with such proceedings. 2013 Nev. Stat. Ch. 281 § 4.
Despite these reworkings of NRS 78.320, the statute did not clearly state that stockholder meetings could be held solely by remote communications. In 2015, the legislature amended the statute again to state plainly that a meeting of stockholders may be held solely by remote communication. NRS 78.320(5). However, authorization of virtual only meetings is not automatic. As explained by the bill's sponsor:
While there is no statute specifically requiring an annual shareholders' meeting, the law does allow shareholders owning at least 15% of the voting power to apply to the district court to order the election of directors if a corporation fails to hold a meeting within 18 months of its last meeting. NRS 78.345(1).Sep 26, 2017
Actually VLDI has indicated five license agreements signed since 2006. Of those one was reversed, two were never taken into revenue and The ISV never integrated the product, and Ganthet never rolled out the product.
Simply stated not on single license agreement of the 5 ever result in commercial use of the product.
Since VLDI is incorporated in Nevada from what I have been told by others that have looked into it is very difficult to call for shareholders to call a meeting. It can be done but besides being difficult it also can be very expensive for both the shareholders and the company. At this point I do not believe VLDI has any money for a shareholders meeting.
Not even a little bit wrong since I specifically stated:
The volume has sure dried up on VLDI, since in the last 5 trading days including today so far there have been only a total of 9 transactions which totals to less than .5M shares. VLDI is now trading about 100,000 shares per day which is less than 1/10 of the average volume from a year ago.
That did not change much, since volume is still declining significantly. So the 5 day average volume changed from my post to closing from less than 100,000 shares per day to about 155,000 per day vs last year average over 1M per day.
The volume has sure dried up on VLDI, since in the last 5 trading days including today so far there have been only a total of 9 transactions which totals to less than .5M shares. VLDI is now trading about 100,000 shares per day which is less than 1/10 of the average volume from a year ago.
You do not need to buy into anything. It is simple as long as a penny stock can get investors to fund operations and issue shares to keep the company alive so that insiders can milk it they will, but once everyone sees through the scam and the money dries up, they do a rinse and repeat. It is not the end of the road only for the existing shareholders since they get screwed and the insiders get to start all over again.
The term on the Preferred As made their whole investment into VLDI very suspect. Why would anyone accept a .10 conversion rate, but require twice their money back in a liquidation and first preference, especially when all the other preferreds got a .03 conversion rate. I have never heard of that condition in any financing package. A condition that makes one think the investors were more worried and/or counting on failure than success.
I know it may seem far fetch , but if VLDI really had something, Bruce and his investors could but the company in liquidation via debt that is in default. The preferred As then could take over the company and make a deal on the product and screw the shareholders.
Not over thinking, just trying to understand the motivation of the preferred A's in requiring this term .
He has not resorted to rinse and repeat because he did not need to, like I said it is what happens at the end of the road when one can not bring in new investors and new money and that is where VLDI is right now.
Just imagine how happy those preferred A's must be that brought in about $1.225M a few years ago with a .10 conversion option. They nailed it when they demanded twice their money back in a liquidation and first preference.
Rinse and repeat is an idiom that simply means doing the same thing over and over again. It can be applied to various situations but in the life cycle of a penny stock it means when one reaches the end of the road and they can't sucker in any new investors, it is time to start over again with either or a new company, a name change, symbol change, and/or new management.
In VLDI's case it has been amazing that in over 20 years they haven't had at least one rinse and repeat. VLDI appears to have avoid it via all the convertibles, which if all were exercised would take the common share count way over the authorized amount. VLDI is approaching the end of its road unless it miraculously finds some cash flow from either a customer, client, financing, or any other viable means to survive, which I believe is highly doubtful.
That exactly what I stated when the PRs stop working they do a rinse and repeat either with the same management or new management and/or either the same or entirely different product and they sucker in a whole new group of investors. The only difference with VLDI is that Bruce suckered in those investors with convertible notes, convertible debt and convertible preferred and they are no longer biting.
Bruce's PRs stop working a long time ago and he has no money to continue pumping without any results.
Yes agreed it is dead money for the most part.
A rinse and repeat is the end of the road for most penny stocks. It is when the leopard changes its spots. It is not something anyone wants and it is usually followed by new players and or a new project.
If PRs could have boosted the share price it would have been done by now and there would be no reason for a rinse and repeat. Bruce first has no funding for PRs and second the string of PRs over the past 5 years have done nothing for the stock simple because they cried wolf too many times and no one is showing up to become clients.
Yes, the stock is dead money if you are invested. It is probably not that Bruce lost interest, rather that Bruce can not stimulate interest and keep the company alive. Thus it becomes a rinse and repeat with or without Bruce.
He does not want a rinse and a repeat, he is being force in that direction since he can not generate operating cash. Which can be seen by the constant reduction in sales and marketing and R&D expenses quarter after quarter.
What is closer .0009 or 1.00 from the current price of .0109?
The answer is a rinse and repeat is closer. No financing insight, No revenues, only 11M common shares to issue and close to a billion on a fully diluted basis when there is only 700M authorized.
It will be interesting when Leonid's daughter updates her SC13G on February 14 to see if she is still holding or if she started selling her position which once was 9.99%.
First close below the 50 day SMA, since October 31. Sub penny levels are coming back. Next stop would be a close below the 200 day SMA and that would be .0098.
Validian Provides Update On Strategic Partnerships
OTTAWA, ON--(Marketwired - Oct 31, 2017
"
We are pleased with the progress of discussions and the level of interest of each large corporation in arranging a strategic partnership with us. These discussions and negotiations are continuing into November, with the structure of a strategic partnership now ranging from licensing to exclusive rights in a particular market sector to acquisition," commented Bruce Benn, Chief Executive Officer of Validian.
I see this morning CANT with the 3,225,495 @ .0135 for sale.
Yes that is very strange, since my level two is TD Ameritrade ( in addition I also have Etrade) and it was showing CDEL on the ask until the market closed and now it shows nothing.
It really does not matter whether it was CDEL or CANT, all that really matters is that there was a 3.5 M share retail sell order all day at .0135 of which about 250,000 shares were taken out. So I would expect the balance to re-appear Monday.
Today it was CDEL sitting on the bid with over 3.5M shares showing for sale @ .0135 of which over 250,000 shares went off the table.
I have never seen anyone in the past show that many shares for sale at once. Early this year I saw OTCX selling 500,000+ share lots per day for over four weeks. I will take your word for it about CANT before November 14th.
It must be a retail sale because MM's never show their hand when they have a large block to sell or buy on their own behalf. They usually just show the minimum of 10,000 shares until the order is filled
Correction with over 250,000 shares sold of the 3.5M by CDEL at .0135.
Looks like the seller is real with over 25K shares sold so far @ .0135
Looks like a big seller CDEL step up to the plate looking to unload over 3.5M shares at .0135. It could be a bluff to acquire more shares below that price, but I doubt it. I only say that because usually they do not show their size if they are selling a big block of stock. it will be interest to see if that sale goes through.
Simple question what has VLDI accomplished over 2018 other than barely surviving a financial meltdown and what does 2019 hold other than a rinse and repeat.
All those that have tried the product have spoken very clearly that they were not interested in putting the VP product into commercial use and until that changes the market has it right.
All that matters is what the market believes, since that is the price you can buy or sell your VLDI stock at.
Bruce was spreading rumors that he was going to have a deal with a major client from over a year ago of negotiating, how soon we forget, and when it did not happen the stock price quickly corrected from the run up to .027 all the way back down to .0057. There were big expectations that early in 2018 that deal would be signed. If that happened that run would have continued, obviously it did not.
Perception is usually reality in the market price of a stock, so yes perception matters significantly. Yes when there is a major difference between perception and reality and reality sets into the marketplace, a stock price corrects appropriately, like when the Enron scam was revealed. There will be plenty of time to get in VLDI if VLDI is going from .015 to 50.00, and if the market got it wrong. But it is highly doubtful that the market has it wrong, based on history.
Yes it is great if you can get in on a ground floor before a stock takes off, but that is not the case for VLDI since the ground floor was over 20 years ago when VLDI was $7.00. This must be the longest development stage company in history that still hasn't commercialized a single product.
Those caught napping are those that held from the high of .105 all the way down to .0046 over the last five years.
Guess what, it does not matter what one believes about VLDI's future stock price, all that matters is what the market believes and currently the market believes VLDI is worth only .015 and it believes it on very low volume.
I guess all those that tested the product both in the field and beta and all those that signed license agreements that are now more than 2 years old, that have gone nowhere, simply could not see what others see without any first hand experience with the product. Yes, Rafael had first hand experience, but he also had many caveats about VP, including how hard it is to build credibility, enter a market controlled by the old boys network, and that VP is not the cure all Bruce has claimed over the years.
Forgive me, but I will go with the first hand experience results to date and that is all walking away from putting the product into commercial use.
Until that changes the market has VLDI probably overvalued simply based on fundamentals. No financing, no revenues, no sales and no commercialization.
To some that may be indicative of a 10-50 Billion dollar company, but not in my book.
If VLDI makes it above the previous 5 year high of .105 this year will be a miracle . Also if it takes out last year high of .0270 would be interesting, and a close above .03 may indicate the possibility that things are turning around, but that is highly doubtful for a company that is cutting sales and marketing and R&D to the bone simply just to survive in 2018 and in over two years since the Ganthet sham has not made on single real sale. Without any news in over a year, other than the financials, VLDI looks like it is headed to the rinse and repeat this year. The year-end numbers are only about 3 months away. Probably a long wait for nothing!
The lower is goes the happier they are since they accumulate more and more at lower and lower prices. I have always been of the opinion that you buy a stock as it is goes up and not down. But now for over 5 years in a row VLDI is making lower highs and lower lows. But do not worry the stock is going to $44.00 or is it $50.00/share. There will be penalty of time to get in if it ever gets over .03 or .06 or even .105 which is it five year high. I believe .03 will be a major hurdle because of all the convertibles that may convert at the price, especially since they have been underwater for so long.
Yes, VLDI got one single real product endorsement which is now well over a year old, without enlisting one single client since that endorsement:
Also do not forget the caveats in what Rafael stated:
I'd summarize it by saying that Validian isn't a magic bullet for everything that can go wrong in a solid data protection architecture, but what it does, it does exceptionally well, and more importantly "how it does it" is really different than conventional implementations I've worked with over the years.
In answer to the question of would we consider Validian; absolutely, if, the objective of the project was to implement any of the functions that it excels at. Again, functionality should always drive a cold, logical and calculated decision process. However, as we all know, personal preference, misconceptions, bias, politics and even good old fashion advertising impact are thrown into corporate decisions every day. So, I'd agree with your observation about marketing - and also if the tech is demonstrated at an established security conference, such as RSA in San Francisco, which I recommended.
So, good old exposure among a peer group that can see value in any product is priceless. You can have the best product in the world, but if nobody knows about it ...
Thus, why I recommended RSA. Because the decision makers with control of the purse strings are all there, and they are also nerds, who can critically evaluate need and value. There's no hard sell that needs to be made, everyone expects there to be some level of sales, but you go looking for it. So, the atmosphere is conducive to just asking questions. For both good and bad, RSA is extremely busy, and speaking / demo spots fill up almost a year in advance. But, we go every year, and even done some pretty good guerrilla marketing for our retail forensic software at party's we've hosted. Same in Vegas
Yes the secrets of the impending rinse and repeat. No accomplishments in the last two years that are meaningful.
That says it all!
BTW they had only two licenses, Ganthet and ISV, and only one integration Ganthet. The Ganthet integration after over two years has gone absolutely nowhere.