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Re: DocMalibu post# 17201

Wednesday, 10/29/2014 11:15:14 PM

Wednesday, October 29, 2014 11:15:14 PM

Post# of 54032
PER STELLA:

1) We've restructured the Honeywood deal such that it is not dilutive to our shareholders, we don't carry their operating costs, and we have access to the amazing cannabis cream AND can provide cannabis cream under Tauriga's own label AND commercialize our own new, additional formulations. This is a big win, in my opinion.


Then why did you do it in the first place? The explanation is condescending BS! TAUG had a more than adequate amount of time to do the ACQUISITION RELATED DUE DILIGENCE! IMO...the acquisition was a lousy management decision that cost TAUG AT LEAST a HALF MILLION DOLLARS in various "thrown away" expenses! As an example, the Honeywood buyout legal fees exceeded $300,000 in cash or shareholder dilution and there is not yet any visible accounting for the legal costs associated with the "divestiture" (please skip the "restructuring" nonsense!), plus Honeywood is holding $170,000 in TAUG's cash, portions of which won't be returned for two years! And how much valuable personnel time was thrown away trying to assimilate the acquired organization! This is time that could have been invested in productive activities associated with TAUG's other business ventures! At best, regardless of the rationalization included in the wordsmithing for the masses, this mistake has proven to be A VERY POOR AND COSTLY DECISION!

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