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Well yeah, how do you think scottrade or Etrade gets their shares for you to buy or sell? They use the market makers. Without the market makers there wouldn’t be an OTC. If you think they are crooks, don’t buy on the OTC. Obviously they are going to make money. They can buy and sell at will just like you can
I just don’t see what any of this has to do with a simple break off fee and collections. It’s obvious they are trying discredit the other party by digging into irrelevant information. I’m not a lawyer but I can see the deception and if I was in the Jury I would rule against it.
The bottom line should be the agreed 15% break off fee. The only real damages in this deal falling through is the 26m cash funding. Trying to push their EBITA is pointless to me when they were getting paid on contingency. 3.9m is a lot of money and way more than they should get. It was signed and agreed upon and why BSF took the case. Both parties are scumbags. Bill Delgado hasn’t made a single dollar of his own in 5 years between 3 OTC companies and Rontan hid money to not pay their workers on strike. Neither has to do with the contract falling through
“The market makers are crooks” is laughable. What’s the difference of you putting in a 50k share buy order and canceling it to try and raise the value of the shares you own? You find me one person in the market that isn’t here to make money...
154 million in damages is BS and you know it. We all know the break off fee is 15%. You are trying to claim a company that makes 0 money had over a billion dollars to buy Rontan....
I’ve posted it many times to you already. The deal was 26m cash(independent), 26m in shares valued at $1(dependant), and a contingency payout based on 25% YAY GP growth (dependant). They agreed to pay off debt with common shares. That’s only 26m that GDSI can be accountable for. You can’t sue Rontan defendant variables
That’s 3.9m - the % of the payout. They may be able to sue for lawyer fees as well but that’s it. Not 154m stop spreading that lie
Now this is true and also why NIO has the potential to be a game changer. It’s gotten so bad over there that they have no choice but to make changes. Changes breed opportunity, let’s see if the leaders over at NIO can grasp it
That’s a lot of India and China. Ive heard wearing dust musks is a fashion trend. Wonder why it hasn’t picked up in LA yet?
Maybe one day Delgado will make a single dollar bill. Would hope so since he’s payed out fat by 3 companies
The agreed break of fee was 15% of the deal. Roughly 70% of the proceedings are going to the law firm and the financing firm. The SPA was 26m cash (independent), 26m in shares valued at $1 (dependent), and a contingency payout based off rontan doing 25% increased GP on a 3 year YAY (dependent). The institution debt was to be payed off by with stock.
That means 15% of the 26m cash is all that I can see GDSI getting. It’s pretty cut and dry, deals fall out all the time. 15% break off fee is much higher than the average 1-3%.
That means the could make up to 3.9m before the 70% payout. That mean 1.17m for GDSI which may pay off a portion of their large debt =)
I seriously doubt Tesla would even consider buying out NIO. It doesn’t make sense to.
Tossing your coins on the Chinese government backing anyone up is a stretch too. This isn’t the USA we are talking about. Their culture, values, and believes are based on individualism.
You either bet on the stock to win or lose. Claiming that shorts are the enemy of every stock means you are only bullish. That’s not the way to play the market. He isn’t wrong but his opinion also doesn’t change things. You might as well get used to that fact. Start playing calls and puts
I doubt they want any ownership. I don’t know why they would want to take on Rontan’s liabilities. They are positioned for a 3.9m break off fee but are giving away 70% of it. That alone is worth taking to court but let’s be realistic, anything more than that is pushing it
You desperate yet?
You don’t get ownership when a buyout falls through... you pay a break-off fee. That’s it
Nobody argued the direction of the stock but they did argue the direction of the company. It dropped so much I don’t think anyone is surprised it bounced. Losing 250m in a quarter though is another story
Bold statement. Who cares about the US? All that matters is they turn things around and make a profit. They can sell all their cars to Russia for all I care. Make money or go bankrupt. Simple enough
Should be a simple case. Contract break-offs happen all the time. That’s why they agreed to a 15% fee. Probably not a top priority case.
Regardless, 26m cash, 3 year 25% YAY contingency, and 26m in shares valued at $1 while paying off institutional debt with shares was the contract. I do not see how they can sue for anything more than the 26m cash. Only independent events can be accounted for. The rest are dependent variables. GDSI only stand to make 30% of the proceedings
Based off that reasoning this one would be a good flip but not long term investment. I bought at 1.3 and I think I’m going to sell tomorrow first thing because I agree, the China situation isn’t getting solved anytime soon. The tech is there, the money and policies are not.
I’ve got an idea for NIO. There is a huge trucker shortage, be the ones to automate freight and make $$$$$
My 1.3 call is looking pretty good right about now
1.5 per wipe is too expensive. Getting closer to my 1.3 entry point. My money is on the comeback story. Out of cash in two weeks huh? Maybe they should build rockets and sell tickets to the mars
You are crazy mike. I will wait for the reversal signs. Everybody loves a good comeback story. Rudy Rudy Rudy!
I’m looking for 1.3 for a bounce play. Probably won’t hit that but if it does I’m a buyer there
MMS are going to do whatever their clients want. They could care less
There is no accumulation. There is no shares even being traded. $20 traded on Friday
It is a 15% break-off fee of the accountable 26m cash. That’s 3.9m + they can sue for lawyer fees (est 5m). 27% of the proceedings goes to the financer, and something like 40% goes BSF. That leaves GDSI with around 1.65m. (All this is a rough estimate based off memory of past filings. Probably off a little)
That’s still worth suing over and all I think they can get.
The rest goes to what Phoenix blue is saying. You can’t prove that the rest of the conditions in the SPA would have been met. 26m shares valued at $1 and a contingency based on 25% growth YAY for 3 years. Both those results are not in GDSI’s power.
The real reality of the situation, Rontan used GDSI as a bargaining chip for other possible purchasers. GDSI, used Rontan as a device to pump up stock to pay off debts. They probably knew of the plan, hence the 15% break-off fee instead of the normal 1-3% plus GDSI couldn’t even run Rontan. Bill decided to be a contract bandit and throw Rontan under the bus. Bill is here to collect, screw, and do nothing else
That’s hardly a selling point. GHS will make a boatload at their discounted prices. This is the OTC, they will be selling their shares into the float. A ton of shares are incoming which is bad for bulls but great for bears.
I’ll use logic instead of scare tactics. It’s pretty one sided here, should be common sense
“It is the intention of the parties that the stock amount will be used by Rontan to repay institutional debt outstanding as of the closing date.”
It’s not 200m... it’s purely 26m cash and a 15% break off fee.
26m cash is all... can’t sue Rontan for damages of $26m of stock valued at $1 when the stock is 1c and the earn-out is a contingency. You are not getting 154m in damages for this
The purchase price consisted of a cash amount, a stock amount and an earn-out amount as follows: (i) Brazilian Real (“R”) $100 million (approximately US$26 million) to be paid by the Purchaser in equal monthly installments over a period of forty eight (48) months following the closing date; (ii) an aggregate of R$100 million (approximately US$26 million) in shares of the Purchaser’s common stock, valued at US$1.00 per share; and (iii) an earn-out payable within ten business days following receipt by the Purchaser of Rontan’s audited financial statements for the 12-months ended December 31, 2017, 2018 and 2019. The earn-out shall be equal to the product of (i) Rontan’s earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the last 12 months, and (ii) twenty percent and is contingent upon Rontan’s EBITDA results for any earn-out period being at least 125% of Rontan’s EBITDA for the 12-months ended December 31, 2015. It is the intention of the parties that the stock amount will be used by Rontan to repay institutional debt outstanding as of the closing date.
What makes you think that they will get more than 100m? That’s just ridiculous. It’s only a break off fee...
They only offered 26m in cash to buy out Rontan. Offering 26m in shares valued at $1 is a joke. The company was going bankrupt at the time... the employees were on strike for not getting paid. The -(EBITA) tells the real truth
Not even layman’s terms can speak logic to a settlement above 30m. Some people here have been spouting out crazy numbers. 15% break off fee on a (-)EBITA company with 26m cash and 26m in shares valued at $1. They would be dreaming to get offered 6x EBITA while losing cash. Stupid stupid stupid. Dreamers will get shut down very quick
Somebody bought 540,000 shares
Fear of missing out of what. Revenue 8 months down the line? No thanks I think investors here know better than to fall for simple minded scare tactics
Longs are getting played like a fiddle. The pumpers already sold
Tailors are hardly considered retail since it’s also a service. I agree retail is dying but I think it has more to do with the casual workplace culture change than retail. People are not wearing suits to work anymore. I have all my guys wear nice Columbia fishing shirts instead. The NFL deal sounds good but it wouldn’t wear a suit to a game or even a watch party
Well it’s crap news. Cut the dividend and cut projected eps with a (2-5%) estimated sales forecast. So much for the buyout rumor. I regret buying shares now
In with 2k shares
Hah! Nice joke.
Who’s going to buy it? Could start with HEB and see if anyone even wants grossly overpriced shrimp
Getting quarantined and making 0 revenue is all the right moves =)
I bought into the NIO hype after riding in a Tesla that went ludicrous speed. Serious horsepower.
Will wait for a good re-entry after the 200m convertible note and earnings are factored in. If that’s more expensive then so be it