Saturday, April 12, 2014 1:09:06 PM
Pennyworld, you are so wrong about the DD. One of the purposes of the DD was to determine if we had a company that was worth waging the legal battle to get information out of Cetek. It is also important to have, if we decide the legal route is the only way to force Mr Hilal to exercise his fiduciary responsibility to shareholders, then you need to have evidence to present to the attorneys to have any chance of a contingency fee, instead of plunking down $50k or more upfront.
As I dutifully reported to this board over a period from about 12-18 months ago, I talked with legal firm after legal firm about a contingency case where we would commit a huge number of shares to satisfy their fees. And I was politely turned down over and over and over because they weren't interested in a no bid stock where you couldn't provide evidence of their revenues. (You will recall that I made this argument forcefully with Orangeman about suppliers accepting Cetek shares for payments. It isn't happening because no one will accept no bid shares unless there is compelling evidence to the contrary. I know from experience.)
I now believe with our new DD that we have a chance for a contingency. But, and here's the even more important point about the DD. If we do decide the legal route is necessary, there are now enough large shareholders here who know that it will be in their best interests to not only take that action but support it financially. And I, of course am one of those, thanks to the DD.
The important point is that legal action was not taken in the past because we couldn't get a contingency and no one knew if the juice would be worth the squeeze financially. Now we do, again thanks to the DD. But all indications, according to the DD are that it won't be necessary. That's the importance of good DD.
As I dutifully reported to this board over a period from about 12-18 months ago, I talked with legal firm after legal firm about a contingency case where we would commit a huge number of shares to satisfy their fees. And I was politely turned down over and over and over because they weren't interested in a no bid stock where you couldn't provide evidence of their revenues. (You will recall that I made this argument forcefully with Orangeman about suppliers accepting Cetek shares for payments. It isn't happening because no one will accept no bid shares unless there is compelling evidence to the contrary. I know from experience.)
I now believe with our new DD that we have a chance for a contingency. But, and here's the even more important point about the DD. If we do decide the legal route is necessary, there are now enough large shareholders here who know that it will be in their best interests to not only take that action but support it financially. And I, of course am one of those, thanks to the DD.
The important point is that legal action was not taken in the past because we couldn't get a contingency and no one knew if the juice would be worth the squeeze financially. Now we do, again thanks to the DD. But all indications, according to the DD are that it won't be necessary. That's the importance of good DD.
