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Not that I am aware of. Can you show me a non-bankruptcy example?
No, it doesn't. The company is being closed. The only things the receiver is allowed to do is to complete those actions already initiated by the company (i.e. the T-Mobile Suit), sell the remaining assets, settle its debts, and distribute what remains to the shareholder. He has no authority to initiate any new actions. You have not seen the Reciever go looking for licensing deals have you? That is because he cannot. He will not initiate any new suits and he will not initiate any licensing deals.
Based on the .01% transfer he has accepted the deal with Diac. We no longer own any other patents outside the US. Even if we did, we could not initiate a new suit there. We could only sell the patent.
The receiver is not free to do what he pleases. He is acting as an officer of the court under the court's direction. His authority goes as far as the court order grants him and the court order is very clear. The company is being close.
This is not a bankruptcy. We will not "come out the other side" of this. It is not about how much money the company has. It is about violations of law that allows the creation of corporations. This was not a prison term, this was a death sentence.
I am open to any rational legal arguement but I am unaware of any case in the Delaware court where a company that was ordered killed was given a reprieve.
It certainly was an interesting day. I think this means that you won't see the "teens" anymore. I would like to know what prompted the late day jump, but I am not so curio][] as to look a gift SP Spike in the mouth.
It will be telling if there is an "end of week sell-off". If so, then Thursday's jump is simply trader action and probably means little. If not, or if today is a green day, then it probably signals the beginning of a recognition that the cumulative factors (Koko, PR, NG prices) are all in our favor and you won't see these prices again in the future (except on the rare dip).
SEC rules are not controlling in this situation. Corporate law of the state of incorporation are. The SEC's jurisdiction only goes to the elements of it being a publicly traded entity and whether it remains so (which it did not). It has nothing to do with the rules of corporate governance. Corporate law decides which actions of a board are legal or are ultra vires, or beyond their power. Ultra vires acts are not binding on the corporation and a legally constituted board could disregard them. However, even when an action is ultra vires it can be ratified by the board, or in this case any legally constituted replacement for the board. If the Receiver chooses to accept the deal with Diac, his actions ratify the otherwise illegal actions of the board and it becomes binding on the corporation.
It was not SEC rules that ultimately tanked this company, although the fact that people wasted the time and efforts of our SEC attorney on frivolous law suites ultimately resulted in us not being able to cure those issues. What brought us down was the fact that the board had failed for years to follow the requirements of corporate governance and that they had no plan on how they were going to correct that problem. The law of the state of Delaware are what is controlling our fate now.
I believe the fact "that he WAS allocated the 1/10th of 1% interest in 923" is proof of the fact that the deal went through. Diac had an interest in the patent prior to the final settlement. He gave up all of it as part of the deal. But in order to not go rounds again over being a "real party in interest" in the litigation he was granted a nominal share to allow him to remain an active party. I am not really sure how you are interpreting that any other way.
Yeah, I am pretty sure it was a package deal. If we decide not to accept the settlement and not give him the 28% and the ROTW I am pretty sure that frees him up legally to continue to pursue the earlier actions based on the original deal after the default. Unless I am misunderstanding you and you agree that we should let him have the 28% and the ROTW and be done with him after the T-mobile judgment.
Again, I am not sure the Receiver wants to go down that road at the moment. Even if the receiver did want to go that route, lets call it the "guaranteed employment for his law firm for the next twenty years" route, I am not sure the judge would agree to it.
But then again, as the history of this company has proven, stranger things have happened.
At this point it has little to do with what the board did or did not do. Clearly they did not do a lot because the company is being wound down. The question is; what does the receiver believe will be in the best interest of the company given the various risks. You can't go back and relive the past. The receiver can certainly chose to reject certain actions but then he has to have an alternative. A number of court ruling still exist that are not exactly friendly to the company. I could be wrong but I don't see him trying to go back to 2008 and try to correct the nightmare created by the original default judgement
You are assuming that the board was illegal. I don't remember seeing anything that indicated that from the court, only that they had violated corporate law and had no plan on how they were going to fix that violation.
The exact affect on the settlement with Diac I cannot say and I believe it is true that the receiver has certain powers that could void actions taken by the company within a certain period of time prior to the court ruling (I am not sure the exact time), but I have never seen anything that indicates he has any intention to do that.
Then again, I have seen nothing from the receiver other than what he has filed in court, so I guess, like everyone else, I wait for something after the Markman decision.
I guess I would not get my hopes up that the receiver sees fighting that fight as being worth the effort, but who knows. For my part I assume he will not attempt to reopen that can of worms.
No, I am not doubting you. I just think it's funny...
If I had to guess, which is really all I can do, the receiver accepted (or has not actively contented it) the deal and Drago owns the foreign patents.
David Lennox ... same name as Lennox heating? too funny.
They may be actively involved in the case but I doubt they are "running things". Even if they were, it would make no difference. IMO Drago stands the most to gain from taking this case all the way. He will be attempting to enforce similar patent infringement cases outside the US. The farther he takes this one the better position he could be in elsewhere. Actually, as long as someone else is assisting with the litigation he should want to take this all the way. Less he has to pay later if the work is shared now. Not to mention that his payout is directly related to the actual amount of the judgement. The fact he is willing to throw more money at this by keeping his attorneys involved would indicate that he sees a payout that justifies the expense.
Of course, you never know with him. There have been plenty of times in the past when people have thought the reasonable thing to do was to work with the company rather than against it, so your guess is better than mine as to what he will ultimately do.
In any case, there are at least another two years of waiting so there is no reason to be in any hurry ... unless you are a creditor of the company.
I guess we hit the 19 cent benchmark, so if you sold at .24 you can buy back in at any point and be ok.
Settlement at this point in the court case is stupidity. The Receiver is not going to settle now. I would not expect any serious settlement discussions until at least the second week of the actual trial.
Without news the price will slowly dwindle back to the upper teens. With news ... well, that depends on the kind of news.
But you raise an interesting point. If Kokopelli is permitted for 42 wells how many need to be in production before the value can be realized? There has to be a discount built in for the time and cost of installing the infrastructure to turn gas-in-the-ground into gas-in-the-pipe. How long will that take and how much will it cost. Do current commodity prices justify the expense?
Not big on JV partners. They usually dilute my interest. Would prefer loans on good terms, but I don't control such things.
Selling in the short term might make sense if you expect the price to drop below .20 before the next press release. But I am not a big fan of chartology, so I dismiss sites like Amiricanbulls pretty much out of hand since they are almost exclusively built on charts and candlestick formations that I find to be unreliable in small cap stocks.
There is some guy named "Ufool" who is just going crazy over on the yahoo board ... makes me think good things are in the wind.
Long term looks good.
Short term I think we have lost our steam and we settle in at about this level until news about further drilling activity. Either that or showing a profit in the next quarter should give us another bump, maybe even to the .40-.50 range.
Then, assuming things in the fields progress and natural gas prices don't dip, 2013 should be a very interesting year.
I had originally planned on only holding a couple of more quarters but now I am thinking I may stick-around until the end of next year.
Maybe if natural gas prices go up they will consider drilling another well.
At this point the next bit of news I am realistically hoping for is positive cash flow in the next quarter.
futr, thanks. Not trying to be an A$$, just curious.
I did expect a 20% spike on the news followed by a slow rise (1-3 months) back to the upper 20's/lower 30's, but a lot depends on commodity prices/additional well development and tie-in to commercial pipes.
Still too early to tell what the final impact will be. Still holding for another quarter or three.
Soooo... two or three more wells?
At what point does "proven plus probable undeveloped (2P) reserves" become "proved undeveloped (PUD) reserves"?
I would have expected a larger spike on the news ... or is it just taking time for the word to spread?
Oh yeah, I forgot something else. When I say "both of those forms of property will be converted to cash" I do not mean at fire sale prices. The mandate of the receiver is to maximize value for the owners of the company (we shareholders). Hence the reason why the T-Mobile infringement suit is proceeding to trial. The value of the suit during or after trial is significantly greater than its current value.
You don't need a market. It is now a privately held company that has a transfer agent to maintain records of ownership. Those ownership shares can be bought and sold through private transaction via the transfer agent. There is nothing illegal about that. If it were, then the entire venture capital system would be illegal.
As a company that is being wound down there is significant risk in being a shareholder of the company ... but there is risk in the ownership of any small cap/pink sheet. Those of us who own shares own a share in two forms of property. One is the patent, the other is the law suit. Both of those forms of property will be converted to cash, debts of the private entity will be settled, and the remaining cash will be distributed to the shareholders.
You are correct that there is no publicly traded company in the form of a going concern, but that is different from there being no value.
Anyone know what is up with this?
Dejour "announced that it has added ~31,000 net acres to its current exploration landholdings in NW Colorado through a restructuring of its Exploration Joint Venture with Brownstone Energy, in place since 2008. Dejour/Brownstone will however retain their respective 71.5%/28.5% interests in the 2200 acre Kokopelli Project, where the Dejour Federal 6/7-13-21 well is currently drilling."
http://www.dailyfinance.com/2012/09/21/dejour-energy-adds-to-nw-colorado-exploration-leas/
I like the addition but no one gives you anything for nothing. Anyone know what the nature of the deal was?
Funny, he didn't mention being the CEO of any of these other companies in his press release.
Probably just idle curiosity at this point, but it would be interesting to know what function Calypso Technology served, how much money was transferred into it from Calypso Wireless, and what those payments were for.
Looks like it. Probably an entity set up by Turrini and Mendoza to funnel money out of the company
He certainly appears to be a major holder. Of course, it is hard to own 40 Million shares in a company whose certificate of incorporation only authorized 1000 share.
Seems too volatile for a slow increase in price, so I am going with the slow decline until news on drilling is released.
Was there ever another "calypso" out there. A privately held company that was a wholly owned subsidiary. I remember seeing something about a company like that once a long time ago. Don't know whatever happened to it. Maybe that is what he is referring to.
He would have to have some justification. The company was never managed properly, at least not since about 2008. If it had been we would not be here. That's why I find it comical that people talk about resurrecting this company with the unspoken caveat the the old management be in charge. I imagine he could refuse the claims and allow the various managers and board members to sue thereby validating their individual claims.
As you said, it would probably ultimately end up before a judge, but I don't think he has unfettered discretion in these matters.
I am not sure that lawsuits against the BOD for mismanagement are within the scope of what the receiver is allowed to do. Lawsuits for theft and fraud are a different matter but you have to consider the probability of actually getting paid.
A more interesting question is, can the receiver deny past BOD members any remunerations they think they deserve based on their damages to the company. Once the company actually has hundreds of millions of dollars you can bet that anyone once associated with this company will be making claims and filing court actions to get their slice of the pie ... even those who would have settled the T-Mobile suit for $5 Million or less. One of the many reasons why I doubt the shareholders will see any distribution of assets for quite some time.
It is now a question of whether the rally will lose steam and settle in to a long decline in price until further news is released, or whether a pull-back will be followed by a slow increase in SP in anticipation of what many consider the inevitable confirmation of the reserves.
I will bet against a settlement anytime soon. There is no reason for the receiver to engage in a settlement at this point. There is little reason for any shareholder to want one since it will not hasten the final distribution.
Not to be skeptical of the intentions of the Receiver as I also believe that the best thing that could have happened with this company is that its operations were take over by the court, but the receiver gets paid substantially less if it settles tomorrow. The longer he plays this out in court the more billable hours he can charge. It is simple math. He will play this out until the end.
Also it is better for us. It is paramount for the final sale of the patent that the its validity become res judicata. That makes its value significantly greater.
I am not of the opinion that there will ever be a resurrected Calypso. therefore increasing the value of the patent is a primary concern to me as a shareholder in a now defunct company.
Just my opinion as a skeptic.
It will peak this week and start a pull back. Wait 30 days and look at it again. It should drop below .15 - then you can reconsider.
I am guessing that once reserves are proven, even with gas being cheap, you should see a spike to about .30. Again, this is just my opinion based on ... well nothing ... but it is what I am betting on.
I expect another green day tomorrow, then a pull-back, then a stabilization probably around .17.
The question now is what happens if/when these reserves change from speculative to proven later this year.
“We are pleased to commence drilling operations at Kokopelli and secure this valuable asset for the long-term. While the initial number of wells drilled has been reduced to reflect current commodity prices, we are committed to drill, complete and initiate production at Kokopelli, preserving significant value for all of our stakeholders,” stated Harrison Blacker, President and COO.
http://www.financialpost.com/markets/news/Dejour+Energy+Moves+Drill+Kokopelli+Leasehold/7187430/story.html
Not sure that would apply since the reason the company is being dissolved is due to noncompliance with state laws regarding proper corporate governance.
The possibility is interesting but ... who would run the resurrected company.
Punitive ... sorry, fat fingers