ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

I think the money was earmarked for Rapimeds along with a royalty on Rapimeds sales owed to the holder. I would bet litigation was threatened.

I'm not aware of anything that would lead me to those specifics, but if you are familiar with the backstory behind how this BOD member got his seat and the circumstances surrounding his acquiring those preferred shares, I would be interested in learning about it.

But regardless, looming litigation or not, it is abundantly clear that SCRC entered into this toxic deal under duress as no sane company would agree to suddenly buy back 6M shares of stock from an insider for .175/share when the current market price is only .04/share (and most likely still in the .02x levels at the time this deal was being negotiated) unless this insider held substantial leverage of some kind -- which may have been why BS Schneiderman was so eager to dump millions of his shares for barely a penny/share not too long ago.

This should set off alarm bells for shareholders and market observers because a public company's BOD is supposed to be an independent oversight body ensuring that company Mgmt acts in the shareholders' best interests -- but yet here w/SCRC, we have a Board member acting out and pushing SCRC to enter into a transaction that is in his own best interest but detrimental to shareholders.

In addition, for non-disclosing paid promoters such as the criminal homophobe JOSEPH ZAMPETTI to pump that this 8K is "clearly an indication that SCRC is flush with cash" to be able to afford to pay nearly $1M per year just to buyback stock from a Board member is truly reckless and speaks volumes as to his intentions since it is quite clear that all this 8K did was announce to the world that SCRC just took on essentially more debt. SCRC's balance sheet is already a mess with tons of financing-related debt that has barely been reduced even in spite of all the cash that came in from Main Ave in 2014 and early-2015. In addition, SCRC is unduly burdened by operational debt as it has struggled to even pay its day-to-day vendors, as evidenced by the magnitude of its trade A/P balances. Now add almost $70k more each month to buy back shares from a Board member? Something has to give: Either SCRC exercises the insolvency clause, withholds payment to the Board member, and go into debt as these payments accrue; or pay this Board member but increase operational debt by letting A/P get even bigger. Neither scenario is good.