Breach of Fiduciary Duty of a Preferred Controlled BOD
If common stockholders were to litigate this situation they would have to prove potential breach of the BOD's fiduciary duties by favoring the interests
of the preferred over the common stockholders. This may or may not be the case. However, I personally feel that the there is the possibility that the Preferred stockholder (s) favored themselves and breached fiduciary duty to common stockholders. If this true, there definitely seems to be a "conflict of interest" with Jake Shapiro wearing the two hats. Common stockholders have not been privy to any communications from the board for some time. We need to know how MDNT is going to become whole from doing this deal. We need to know what MDNT owns and what they owe and why MDNT is transferring the lease, supposedly worth $22 mil over to a company for 10 Mil dollars with no interest payable in 20 years. (I will probably be deceased in 20 years!) LOL This doesn't seem like a good deal for Moon River Stockholders. Jake, who owns a majority of the preferred, looks to me, will benefit versus the common stockholder.
These are my personal opinions and not to be construed as a recommendation to buy or sell a security. You must perform your own due diligence in making decisions to invest.
