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If that is true, there is no problem whatsoever. The litigation is in their favor. They drag things out, pay off debt, dispose of litigation and everyone gets rich.
I know many super attorneys including the best of the best but they will all tell you the facts and evidence control.
Let me see if I can clarify some of the things that have been said here and I do so as a trial attorney. Issues of chancery or equity (unclean hands, reformation of contract) are decided by a judge, never a jury. Issues of law (breach of contract, damages) are decided by a jury if there is one, and, if not, by the judge. If there is a jury request, there will be a jury on law issues unless it is waived by the parties at trial. It is customary for a party to request it and wait until later to decide to proceed on it. Whether or not a jury is used does not in any way indicate what the outcome will be. So-called super lawyers do not mean a lot. As long as both attorneys are competent and qualified, one is as good as the other. Cases are usually won on the strength of the facts and evidence, not who tries the case. Most states have mandatory mediation (somewhat like arbitration) before trial to see if the case can be settled without taking the court's time for a trial. Nothing said in mediation can be used at trial since the law favors settlement. Once a case is filed and there is an answer, the court will hear motions by the defendant to dismiss part or all of the case. If they are granted, the plaintiff is then usually given 30 days to amend the complaint and the process starts over. It is not unusual to have two amended complaints and the process can take a year depending on the court's docket. Once a complaint is decided upon, and only then, discovery starts. Discovery starts with written questions (interrogatories)and is then followed by depositions (oral questions). This process can easily take two years. There is usually not a major move in stock price during this type of litigation because the company may see it is going to hit bad and file for bankruptcy. If they do, the shareholders get ignored since the judge is only interested in protecting the creditors. A bankruptcy judge is very powerful and has the power to order the issuance of more stock (and authorized shares) if necessary without shareholder approval. Thus there is a risk for shareholders as long as the litigation goes on. Anyway, the entire litigation usually takes several years and there is nothing that can be done to speed it up. Hope I have helped.
MM's don't trade in amounts this $ small. My guess it is it is penny day traders that think they have hit the jackpot when they play a small swing for a $75 profit.
Let me give you a hypothetical. Company A has little or no money. Company B has fantastic technology but needs funding. A tells B they are going public soon and when they do B's shareholders will get a multiple of what B is worth. B is convinced, desperate for money. The deal is that A puts down a little money and gives a massive note for the remainder, to be paid when it goes public in a few months. Wisely, B's attorney has an unwind provision. The deal is hyped that A just acquired B to be its flagship. B's stock skyrockets in anticipation, maybe with some smooth pump. A dumps B stock. Stock tanks to penny or sub penny. Everything is great until a shareholder in B figures he has nothing when he was expecting millions. B evokes unwind. Can't do because of what happened. Shareholder gets attorney. Big lawsuit but B does not survive.
Do a little homework. See if any of this could possibly be applicable.
You should see my 54 year old sister, much better looking.
That is me, not daughter. If you research HOTI you will see how massive the trouble is going to be.
That is correct, it is the death spiral financing and its guarantee to dilute and cause short selling to depress the price that is the problem.
2009
Robert Hipple, a lawyer and the former CEO and CFO of now-defunct business development company (“BDC”)2 iWorld Projects & Systems, Inc. (“iWorld”), overstated the value of iWorld’s primary asset – its investment in several portfolio companies – in three consecutive quarterly filings in 2005. Hipple, who personally performed iWorld’s accounting and financial reporting functions, also misled iWorld’s auditors into believing that the company had independently evaluated the worth of its portfolio companies. As a result of his conduct, Hipple i) violated the antifraud provisions of the Exchange Act, filed false Sarbanes-Oxley executive certifications, misled iWorld’s auditors, falsified books and records, and knowingly circumvented internal controls; ii) violated Section 57(a)(1) of the Investment Company Act; and iii) aided and abetted and caused iWorld’s violations of the reporting, books and records, and internal controls provisions of the Exchange Act, and iWorld’s violations of the BDC books and records provision of the Investment Company Act.
B. RESPONDENT
Robert John Hipple, age 64, resides in Cocoa, Florida. He is an attorney licensed in Florida and Georgia. Hipple and an associate controlled the management and operations of iWorld Projects and Systems, Inc. (“iWorld Florida”), a private Florida company, when it was acquired in early 2005 by iWorld Projects & Systems, Inc. (“iWorld”), a business development company. At the time, Hipple was the CEO of iWorld Florida. After the acquisition, Hipple formally became iWorld’s CEO and remained in that position until he resigned in March 2006. He also acted as iWorld’s principal financial officer.
http://www.sec.gov/litigation/admin/2010/34-61688.pdf
2007
Plaintiff-appellee David K. Broadbent (“Receiver”) in his capacity as Receiver for Merrill Scott & Associates, Ltd. (“Merrill Scott”) was awarded summary judgment against defendant-appellant Robert J. Hipple after the district court determined that Mr. Hipple breached his fiduciary duties as an officer and director of Merrill Scott. Mr. Hipple appeals, contending among other things that the complaint should have been dismissed pursuant to Federal Rule of Civil Procedure 19(b) for failure to join an indispensable party.
Exercising jurisdiction under 28 U.S.C. § 1291, we affirm in part, vacate in part, and remand for further proceedings. We affirm the district court’s denial of Mr. Hipple’s motion to dismiss for lack of jurisdiction, because the court unquestionably had jurisdiction over the action in which the Receiver was appointed, and this action was clearly filed in furtherance of the Receiver’s goals. We also affirm the district court’s decision to strike Mr. Hipple’s motion for summary judgment as untimely
http://ca10.washburnlaw.edu/cases/2007/11/07-4078.pdf
Good post.
That is clearly first step but will not make up deficit.
Here is the problem. CBAI needs money to keep the doors open because of negative cash flow. They can get it from investors but because there are no earnings, they have had to resort to "death spiral" financing where the lender gets massive stock for a discount and then dumps it on the market below current prices, diluting the stock, and causing the price to go even lower. The other alternative is sell massive amounts of stock to keep the doors open but that severely dilutes the stock ever further. How do any of you suggest the company get the money to keep the doors open. Don't tell me from profits because the company continues to operate at a loss. I'm interested in anyone's business plan.
Whoopie, when will the dividends start flowing.
Go back and look at my post 72093. Then look at management because that is what counts.
There is one, and only one, group and way for this to happen. Anyone that cannot figure this out should not be involved here or they will lose everything.
Now, who has over 50,000,000 that they can sell?
The chill, whether or not there was one, has no ultimate impact on the PPS. Now that it is "lifted" there will be some dramatic swings in the PPS for a few days. Some investors will think it is a sign of a future run and will buy. Some will now be able to sell and will sell. Traders will recognize that there will be big fluctuations and will buy and sell daily (even short sell) to make a quick profit. However, when the dust settles, the PPS will reflect the faith in management (that always determines PPS for MM's) and the belief in the sector and the long range profit of the company. In a few days, the PPS will settle down to what real investors think of the company. It may be dollar plus or sub penny but the system will work. Ultimately, profit and potential dividends will rule.
Sub penny by end of month.
From full 10Q on EDGAR:
"Common stock, $.0001 par value, 250,000,000 shares authorized, 101,018,608 (Sept. 30, 2011) and 62,838,832 (Dec. 31, 2010) shares issued and outstanding, inclusive of treasury shares."
Is that not over 50% dilution?
That is correct. While MMs and wise investors will look to the 10Q, I am sure many of the players on this board will jump on tomorrow. Based on this, would not be surprised if it goes over 1.00 maybe even over 5.00 a few minutes after open.
876 to 878 Wow
STELLER QUARTER RESULTS!!!!!!!!!!!!!!!!!!!!!!!!!!! or STELLER QUARTER dilution??????????????????????????????????
I don't understand what affiliates contribute.
Sorry kids, but MM's can read a 10Q and this one is not good especially with the significant dilution.
The 10Q showed an approximately 50% dilution! Duh!
Won't be stuck on the .04's long, will be in the .03's.
Put on the glasses, need a couple more pair to put over them to pump it up.
I don't see the excitement from the 10Q. While they are doing a little better in the loss area, they still have a substantial negative cash flow and have essentially improved their position by roughly a 50% dilution of shares. Still, a company losing money and significantly diluting shares would not cause me to run out and buy the stock.
I never ever said anything one way or the other about the Q. I have no knowledge about when the Q comes out nor do I care.
See post 71567
The sector does not have FDA approval.
"Out of time" ???????????????????????
I don't see it as huge. Look at the warnings. It is only for a very limited treatment when there is nothing else. FDA has a program where they will approve what is called "orphan drugs" with monitoring. There will be numerous such cord blood applications "approved" by FDA but they won't translate into money until Medicare/Medicaid BC/BS, and the insurance companies agree to pay for it and that is probably a long way off. Until then the only ones using it will be research hospitals and the very rich. It is great to get the approval and is welcome and after several years it may help the company but for now it does not translate into noticeable profit for the company.
Dreaming is great. It gives you warm fuzzies and lets you sleep at night. Don't know if it is a good investment plan however.
You are absolutely correct. In 3-5 years, maybe just a little longer, this stock is going to explode and may even hit .15 or .20.
What are you trying to say?????
You always say: "Good luck, michael" What does that mean?
Maybe I don't understand the acquisition chatter.
You can do a search and find the terms of the LOI with CMEX:
"The purchase price is set at $17.84 million, $12.5 million to be paid at the closing, and CBAI also has to pay debts of the acquired company for $5.5 million."
CBAI has a cash position of $236,000.
Can CMEX or CCEL be acquired without essentially diluting the current shareholders out of existence?
Surely no one thinks Platelet Rich Plasma (PRP) has anything to do with cord blood do they? If PRP ends up being the preferred treatment then there will be no need for cord blood since the PRP can be obtained from centrifuging fresh peripheral blood from the individual.