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What can we do about it?
It's true LMF just sent me an email. What happens next. This is what we should start discussing. Those with experience please let us know whether there's any hope.
I think we should use every possible avenue to achieve our goal -- SEC, NASD, FBI, State Attorney's Office, etc. but we have to be led by an attorney. I am ready to get involved -- cbarones@gmail.com
Please let me know how I can help. What happened here was unethical. This company along with shareholders were looted. At the risk of repeating myself, $7 million disappeared within a few months with no accountability to date from the company. Bank loans were taken and not used for purposes intended. Facilities that were supposed to be built have been halted and equipments earmarked for producing nicosan are still sitting in customs unclaimed. (In his conference call, Swift said they weren't necessary). How could they not be necessary when they are needed to produce nicosan may I ask?
Someone has to be held accountable for this. I would like to go a step further and involve the State Attorney's Office to look into possible grand larceny and mismanagement and diversion of funds. These guys have to answer to shareholders somehow.
I would also like to add that this company is generating revenues that's not being released to the public and kept away from shareholders. Developments such as the extension of the license to market nicosan has not been released either. This is an affront to shareholders who invested their hard earned money in this company.
Please email me at cbarones@gmail.com. I would like to get involved. At this stage we have nothing to lose anyway since we've lost just about all our investments already.
Looking good guys, looking good. Go XKEM.
I would like to ask him what he did with the $5million that disappeared over a period of 3 months. If the money was used to pay off debts, we need an accounting of these transactions.
Also, I would like him to defend his rationale for building the plant and ordering equipments that Swift now says are completely unnecessary. Whose version should we believe?
lmf, just wondering where Dr. Pandey found these guys who gave him money and then fired him? Did his lawyer approve of the agreement before receiving funds? What kind of agreement did he sign? I don't remember seeing the agreement between him and Basu. Once again, he did not share it with his shareholders. This is a tragedy of Shakespearean propotion.
It would take a miracle for this situation to be resolved. When you see Dr. Pandey, tell me we are pissed at the way he allowed this company to colapse.
Pandey turns around and sues the company and got all his family, friends and associates to sue the company. Why? may I ask. He should have at least called a shareholder meeting and put all these issues before shareholders but he didn't do it. We got the short end of the stick.
As I said before, I hope there is a happy ending to this sad story.
lmf What I am trying to say is that it was Dr. Pandey's responsibility to shareholders to safeguard the company from the likes of Basu and Swift. He failed us and destroyed the company he worked so hard for by handing over the company to people who have no interest whatsoever in the drug and the company. How did Swift take over? Was there a shareholder meeting? Did shareholders vote him in? No. These are all the steps Pandey should have taken to protect shareholders' interest but he did not do it.
It is very sad indeed to witness Dr. Pandey on the sideline while this company is being run to the ground.
For all involved, I hope for a happier ending to this sad story.
We believed what we wanted to because nothing was ever made public to shareholders in the form of pr's. They broke securities rules by feeding inside information to a shareholder. It's a real shame that we all found ourselves in this situation. It feels like we were all led to the slaughter house.
Dr. Pandey was at the helm when the theft occured. He's responsible for letting this whole situation get out of hand and for handing XKEM over to Basu and Swift. It is mind boggling to witness how this company unravelled so fast after the infusion of capital. $3.5 million from the Nigerian Government, $7 million in private funds and millions from banks disappeared within a few months only a year ago with equipments sitting in the docks unclaimed. It costs very little to build a factory in Nigeria. All the money that came into the company could have completed the project by now and sales should have increased geometrically instead, these crooks are thinking of a way out of their obligations to shareholders and creditors through bankruptcy. I am amazed.
Those involved should be prosecuted, jailed and removed from the society. I am prepared to accept my foolishness in investing all my funds into a drug that I thought would bring relief to millions of sufferers and into Pandey's tireless efforts in bringing Nicosan to market. Who would have thought that Pandey could actually operate on a shoestring buget but failed misrably when millions of funds became available to him? I put the blame squarely at Pandey's feet.
Basu is a Venture Capitalist acting on behalf of his investors. He works closely with management of XKEM and has priviledged information. He is involved with day to day activities of the company. He has to excercise some discipline in comunicating with individual shareholders.
The protocol is communication via a public release. He is making a joke out of this whole situation.
I have been saying this for a while now that he's breaking the law by telling people things like the company is out of funds, may file bk, sales are not up to par etc without any data to back up his ascertions.
All he has done so far is create an athmosphere of despair among shareholders and this is unprofessional and unwanrranted. I wish he'll behave in a more professional manner and respect us. I am not one for litigation but if we can change his attitude through this route, then so be it.
Pandey got $3 million from Alembic and reduced it to $1 million. He was supposed to pay off the million with the PIPE but so far this has not been paid. That's where the problem is now. They have to either pay it or enter into a distribution agreement with Alembic. IMO.
Part of it was supposed to be used to pay off Alembic and that did not happen.
You talked to Pandey? Did you ask him what he did with Basu's money?
IMO, Alembic could be interested in acting as a distributor of NICOSAN in India and Africa. I doubt Swift and Basu would give up control of XKEM though unless the offer is huge--maybe $3 billion???
Here is a copy of the original Memorandum of Understanding between XKEM and Alembic dated 4/19/04. Eventhough, Pandey terminated this agreement, Swift can work out a new agreement with Alembic to distribute Nicosan worldwide and forgive the loan or raise funds to pay Alembic as a result I don't see a way out through bk because of non-payment. It takes a little bit of business savvyness to get rid of a problem like this one.
Xechem Announces Execution of Definitive Agreement Documents Regarding Business Cooperation and Cash Infusion Pact with Alembic, Limited, a Major Indian Pharmaceutical Company
Business Wire, April 19, 2004
Business Editors/Health/Medical Writers
NEW BRUNSWICK, N.J.--(BUSINESS WIRE)--April 19, 2004
Xechem International Inc. (OTC BB: XKEM) today announced that it has executed definitive closing agreement documents in connection with the previously announced memorandum of understanding with Alembic, Limited, a 97 year old pharmaceutical company based in India. Alembic specializes in the manufacture and distribution of pharmaceutical products in Asia and Africa. The Company believes the strategic alliance established by this Agreement will enhance and accelerate its ability to bring NICOSAN(TM)/HEMOXIN(TM) to market, expected to be within the next 12 months. NICOSAN(TM)/HEMOXIN(TM) has shown efficacy in clinical studies in Nigeria, in the treatment of Sickle Cell Disease (SCD). Currently, there is no definitive safe therapeutic treatment for a majority of sickle cell anemia patients.
The definitive agreement tracks the Memorandum of Understanding, which calls for, among other things, the funding of up to $3,000,000 in 4-year loans from Alembic, in addition to its $640,000 equity investment in Xechem. The funds are slated primarily toward moving forward Xechem's efforts to commercialize NICOSAN(TM)/ HEMOXIN(TM) in Nigeria.
According to Dr. Ramesh C. Pandey, Xechem's Chairman and CEO, "We are looking forward to the day when our launch of the product in Nigeria will become a reality. The support provided by Alembic, both from a financial and a development/marketing perspective, should bode well for the future."
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Maybe the stress was too much for him. He has shares he can redeem later I suppose. Remember, this company is going through a major change and need to be staffed with new employees who are not loyal to the old regime otherwise there would be sabotage as time goes on.
Very nice. Let's let them know that we support them.
I have a feeling they would settle the Alembic loan before the deadline. They can easily raise $1,000,000 to pay it off if Alembic becomes a nuisance. I suspect that revenues from Nicosan is being used for administrative costs including overhead, salaries, training and distribution. The company is not at a point where it can easily dispense money since part of the revenue is being paid to the FGN.
We could start an upward momentum once the bad news is out. IMO
Fiat....8-k dated 7/5/07....Dr. Swift purchased $100,000 of units and assisted Basu Capital in performance of advisory services with respect to the corresponding Securities Agreement, for which he was compensated (i) $56,400 in cash from proceeds paid by the company to Basu Capital and (ii) an allocation of options to purchase up to 17,908,914 shares of the company's common stock at $0.001 per share expiring April 4, 2009 from the options allocated to Basu Capital in connection to the performance of its advisory services.
I do not know how these options work. I guess Swift can convert on the day the stock price hits $0.001. If this doesn't happen by April 4, 2009, then he cannot convert? Could you explain how this works to me??
8-k says Swift to convert at .001. Could be the reason they're letting this slide. If not, I would like to know why not.
Very well said trans..it's very difficult to know people's agenda on this board. One minute the sky is falling, the next minute, oh its really not falling. Some posts just scares the daylights out of me and I am sure scare a lot of shareholders with significant holdings in this company.
It's not necessary at all. We are adults and capable of making our own decisions and analyzing the current situation. We don't need people scaring us with unsubstantiated "facts".
Isd...Very interesting that XKEM was mentioned. Is it possible to get a hold of the issue and tell us what was said about XKEM IPO?
Thanks.
rotweiler..I put my hands over my head, look under and saw Basu and Swift.
If Basu is giving you sensitive information then he is breaking the law. Tell him to release a PR.
It's okay to speculate. We all do. Nothing wrong with that but if you specifically say that Basu told you Nicosan is not selling then you are treading a fine line between speculation and facts.
drift...be carefull what you write. This information you supposedly received from Basu is very sensitive. It may not be true. Please refrain from posting such information. If Basu has comments about sales, we would appreciate it if he addresses us as a group.
Thanks for all your efforts.
pchenh...I hope your daughter is not starting school next semester. If so, she can get a student loan and use XKEM for her retirement instead.
Dr. Pandey fooled all of us. Now we just have to wait and see how Swift and Basu can turn this company around. It's boiled down to prayers and hope. GL.
Oh I see. lol
What's happening on May 31, 2008?
drift...a good source of information is the US based company that was engaged to supply prefabricated offices. Do you know what the status of these shipments is?
On second thought, I doubt it very much that Dr. Pandey squandered the loans. He didn't have enough time to do much damage. I think there was a deal between him and Basu that backfired. Anyway, XKEM has obligations to complete the plant and produce NICOSAN per NEXIM, UPS/EX-IM banks.
Appointing Swift was a big mistake that's why we are not making any progress. He appears to be totally uninterested in XKEM. I think he's in the Pandey camp. Maybe he should be fired too.
Pandey did not expose the company to too much debt. The only ones outstanding are the Alembic loan, which is paid down to $1 million and the recent loans from UPS/NEXIM, etc. The total of which doesn't even add up to $15 million. So, imo loan shouldn't take too much out of the value of the company.
drift...let's hope they are working on a buyout and not privitization. Buyout for $1.5 billion would be nice. Still a steal for the buyer, imo.
drift..it's either they just don't want to interact with shareholders for fear of releasing sensitive information or there is something seriously wrong. I choose the former.
A lot of sensitive information were released during Pandey's era. This board was full of Burg told me this, Burg told me that. So maybe they're just trying to stay within SEC regulations. Insider information cannot be released to a single shareholder or a group of shareholders before the news is released to the public.
We should all have patience and see this through. The fact that Basu has his clients in this stock gives me a ray of hope.
We're up 20%!
Why do you think it wouldn't be more than $0.01 per share? Projected revenue for NICOSAN is in excess of $2 billion. This has to be factored into the price. Any price less than a $1.00 is a steal. I don't think Basu would give this company away. JMO
Drfit...They will not necessarily sell it at this low pps. They can set a price and negotiate it with a buyer. If they do, the pps will automatically go up to the buyout price since it reflects the stock's fair market value.
IMO, this is the best exit strategy for Basu instead of hanging on until a new CEO comes on board and waiting for performance to reflect in the pps. He could be here for years and I don't think he plans to.
I am hoping this scenario plays out. It would be the best option for us as well.