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Have not posted in awhile. Been monitoring this here and there hoping for a miracle turnaround.
Looks like there was an update posted on 9/24 in the court case.
1245 - Application Ord Show Cause 24-Sep-2014 Extra Text: DEFT'S APPLICATIONFOR ORDER TO SHOW CAUSE WHY PLAINTIFF SHOULD NOT BE HELD IN CONTEMPT; REQUEST FOR ATTORNEY'S FEES - Transaction 4622283 - Approved By: MELWOOD : 09-24-2014:16:39:07
http://www.washoecourts.com/index.cfm?page=casedesc&case_id=CV14-01340&Submit=Submit#events
My fear is that the ARs do not exist either. Manu should definitely be going to jail if that is true. In that case, Storage 24 revenues were also fake. Plus in the 10k, Manu said they expected to collect the ARs in Q3. A lot of misleading information if that is the case.
That is definitely possible if there is more than hot air behind Jake's words. Saying we will see quick progress with construction.
It looks like a pre-trial conference is set for October 10 in Manu's case. I wonder if it is possible the charges would get dismissed during that date. Does anyone have a law background and know?
This seems to be getting a lot closer to the pre-suspension price. All the higher volume trades are at .0006 and .0007. It is a good sign. Does anyone has the latest O/S?
I think it is pretty clear that Medient has some valuable assets. Otherwise why would Manu be fighting in court. If this was a total scam, Manu would be on the first plane to India.
There are obviously a lot of questions of how much there assets are worth. They may not be worth what is stated on the balance sheet. I would think at least some of the ARs have to be real or else Manu is in some real trouble.
The company needs to issue some updates on their business operations. There is no incentive to buy when there is so much uncertainty.
I do not have private messaging. I am no expert on grey sheets. I thought they could still issue equity. I thought toxic financing would end because there is no MM to sell the shares on the grey sheets. I thought they could still privately place shares. I do not know this for sure.
Worst case scenario, I believe this will allow the company to sell common shares and dilute Manu's voting rights. Manu will no longer have complete control of the company even if he is able to get Jake's shares revoked. As some of his decisions are becoming public knowledge, Manu back in charge would be as bad as dissolving the company.
Why is there such a large amount of time between now and the court date? Is that normal? I would have expected a couple of months at most.
What an idiot Manu is. Just lost an extra $20,000 in fees by bringing his frivolous lawsuit. Plus the SEC will be going after him soon. Koppelman is the man.
Its amazing how dumb Manu was. He has a staff of 20 people who are doing nothing to create shareholder value and telling them he will pay them $150,000 each. The items that self was hired to work on never happened.
I used to work in employee benefits and so I could see the company salaries. At a small company of 70-100 people, you would usually only have 2-4 people making anywhere around 150k. I hope the SEC goes after this idiot hard.
At least Jake looks the part of a CEO. Delivers presentations with confidence and fluently. Manu sounded like Milton from office space half the time.
Agreed. Shouldn't these alleged deferred wages have been disclosed in the financial statements?
People seems to be questioning whether the account receivables or Yellow assets of Medient are real. I am pretty sure Manu would be on the first flight to India to avoid jail rather than trying to fight for his company in U.S. court if the assets were not real. There must be value in Medient or else why would Manu be fighting for the assets.
Also, those account receivables are related to Storage 24. Below are a few articles detailing who storage 24 was sold to. Even though it bombed theatrically in the U.S, it still made good money abroad, VOD, etc. I would like to find out where all the dilution money went to these last several months. That should have been enough to keep Medient afloat until the release of Yellow or collection of ARs.
http://www.hollywoodreporter.com/news/magnet-buys-north-american-rights-384017
http://www.screendaily.com/news/distribution/magnolias-magnet-takes-us-on-noel-clarke-horror-storage-24/5048293.article
This whole situation could certainly warrant an episode of American Greed on CNBC if either Manu or Jake goes to jail. It has it all. Government incentives, mention by the governor, fleecing of investors, an arrogant CEO and scammer Jake. Lots of drama. Koppelman and Patterson's involvement. The only thing it is missing is jail time for the crooks.
I agree with you. The only way we recover any money is if Medient's assets are real and the company tries to go on. I agree that there is a small possibility but a chance we could recover to some extent. I am waiting for the official statement.
Horrible dishonest management.
They had a lot of stuff that made them look legitimate. A lot of smart people invested here. I do not think many saw the 90% drop in month happening besides those who trade pennies. Even a lot of those people did not see it.
Koppelman
Prime Focus Partnership
Effingham County Deal
Storage 24
Yellow
Atlas Acquisition
Hired a Contractor
Activity Guidance
Press Clippings
Seethruequity
I would think a court could make twitter release that information. Idk for sure.
Yeah I saw that. Manu left a lot of destruction. It is amazing how poorly managed this situation has been. I thought it was possible that we would get heavily diluted but I did not think bankruptcy would occur. They raised a lot of capital the last few months which if managed properly should have allowed us to at least see how Yellow did and collect on the receivables. This sucks.
I think Vaporman aka Stocklordz on twitter has screenshots of things Manu removed off his twitter.
It said that occurred in may. It must have been the exploding OS.
I do not think this conspiracy theory makes any sense. Several things to think about.
1) How did Jake know that he would not be fired by Manu if he was purposely tanking the stock?
2) How would Jake know that the BOD would go along with him in this takeover?
Its seems like he would have to plan this conspiracy months or years in advance waiting for just the right moment. A big reason why the company had to resort to such dilution was because Yellow was held up in lawsuits. Did Jake plan this also?
I think that there would be some value left over if they were to liquidate but shareholders would be much better off as an ongoing business. The incentives from Effingham county are worth quite a bit. Once account receivables are collected, this company should not have to raise equity for operations. We are a month or two away from movie releases and collection of receivables. This is not the time to dissolve the company.
Manu is just being spiteful in my opinion. I would not be surprised if he wants Medient to dissolve so he can bid on the assets of the company.
I highly doubt he will be successful.
He wants to dissolve the company. This is not good for shareholders.
Keep in mind, this is Manu's side of the story. It is obviously going to be slanted in his favor. The fact that the company was reduced from 28 employees to 3 or 4 shows how much overhead was being wasted by Manu.
I was wondering the same thing. I do not think he owns 1/10 of the shares outstanding.
It says only someone who owns 1/10 of the stock can file using that law. Does Manu even own 1/10 of the company stock? He owns 1/10 of the voting rights but not 1/10 of stock?
Below is the Nevada law Manu is trying to argue.
NRS 78.650 Stockholders’ application for injunction and appointment of receiver when corporation mismanaged.
1. Any holder or holders of one-tenth of the issued and outstanding stock may apply to the district court in the county in which the corporation has its principal place of business or, if the principal place of business is not located in this State, to the district court in the county in which the corporation’s registered office is located, for an order dissolving the corporation and appointing a receiver to wind up its affairs, and by injunction restrain the corporation from exercising any of its powers or doing business whatsoever, except by and through a receiver appointed by the court, whenever:
(a) The corporation has willfully violated its charter;
(b) Its trustees or directors have been guilty of fraud or collusion or gross mismanagement in the conduct or control of its affairs;
(c) Its trustees or directors have been guilty of misfeasance, malfeasance or nonfeasance;
(d) The corporation is unable to conduct the business or conserve its assets by reason of the act, neglect or refusal to function of any of the directors or trustees;
(e) The assets of the corporation are in danger of waste, sacrifice or loss through attachment, foreclosure, litigation or otherwise;
(f) The corporation has abandoned its business;
(g) The corporation has not proceeded diligently to wind up its affairs, or to distribute its assets in a reasonable time;
(h) The corporation has become insolvent;
(i) The corporation, although not insolvent, is for any cause not able to pay its debts or other obligations as they mature; or
(j) The corporation is not about to resume its business with safety to the public.
2. The application may be for the appointment of a receiver, without at the same time applying for the dissolution of the corporation, and notwithstanding the absence, if any there be, of any action or other proceeding in the premises pending in such court.
3. In any such application for a receivership, it is sufficient for a temporary appointment if notice of the same is given to the corporation alone, by process as in the case of an application for a temporary restraining order or injunction, and the hearing thereon may be had after 5 days’ notice unless the court directs a longer or different notice and different parties.
4. The court may, if good cause exists therefor, appoint one or more receivers for such purpose, but in all cases directors or trustees who have been guilty of no negligence nor active breach of duty must be preferred in making the appointment. The court may at any time for sufficient cause make a decree terminating the receivership, or dissolving the corporation and terminating its existence, or both, as may be proper.
5. Receivers so appointed have, among the usual powers, all the functions, powers, tenure and duties to be exercised under the direction of the court as are conferred on receivers and as provided in NRS 78.635, 78.640 and 78.645, whether the corporation is insolvent or not.
[49a:177:1925; added 1941, 405; 1931 NCL § 1648.01]—(NRS A 1993, 2766; 2009, 1683)
8k released. Manu resigns from BOD.
Wow this old management team lacks professionalism. These guys need to move on.
What do you make of all that shorting?
I think 5.4M of that is from Storage 24 which is to be collected in 3rd quarter. The rest I believe is from Atlas. Not sure when they expect to collect that.
Do not forget they also have 5M of account receivables from Storage 24 they expect to collect in 3rd quarter.
You were real excited when they announced Titas Atlas back in March. Then again back in May or so. Now you suddenly dislike them? All the information was available on them back then.
VFIN is on the bid and ask. They want to reload.
This is Cassavetes baby. This was a very artsy project that was important to him. Hopefully, they can get him on board doing radio interviews. Maybe even going on TV to promote the film. NPR interviews people all the time regarding their films. It would certainly be an interesting interview given what is in the film.
I wonder what the breakaway gap up will be if bank financing is announced. It will be pretty epic.