Imorovan:
I respect your opinion. I really do. I think that every single shareholder has a right to do what he or she thinks is best.
I was one of the plaintiffs on the class action suit. I, like the others, had to think long and hard about what was best for Loch shareholders. In doing so, I took my responsibility very seriously and worked hundreds of hours behind the scenes with the other plaintiffs.
It became evident after examining all of the options available to shareholders and obtaining sound legal advice that the options were fairly straightforward:
1) Get the spinoff to occur at the best possible ratio and at the earliest possible time for Loch shareholders, or
2) Litigate the issues aggressively, including disgorgement and/or challenging the APA, for up to three years or more, at which time the marketplace could pass Loch, CDEX and its technology by, and there would be no guarantee that we would be successful anyway.
Option #2 had a number of problems, including Loch's the ability to get BOD insurance. Also, the fact that Loch did not have revenues or audited financials created additional problems/challenges -- challenges that may not have been able to be overcome. Also, the legal fees with litigation taking two or more years would have been a lot steeper than what they were with the present litigation, which would have cut further into the assets that would have been left.
I am not fooling myself into thinking that CDEX is going to be extremely successful, but I also believe that the first option was the only option that would give Loch shareholders any chance whatsoever to participate in whatever chance the technology has in the marketplace. You may disagree with that option, and you may feel that another option may have been available, but based on what I and others believe was very sound legal advice, we had to make a decision. I believe that it was the right decision.
This option will result in you and other Loch shareholders receiving your CDEX shares within a matter of weeks, not years. This option will allow the technology to move forward in the marketplace NOW, without having to wait years to clear up various legal impasses.
Also, consider that there is nothing in the settlement agreement or final order that precludes the SEC and other three-letter agencies from aggressively pursuing the defendants. There is nothing in the settlement agreement or final order that even precludes the three-letter agencies from attempting to further disgorge the principals. Fortunately, though, there is language in the settlement agreement and in the final order that would preclude the principals from participating in control of CDEX, as their shares will become non voting shares.
Will CDEX be successful? I do not know, as I do not know enough about the marketability of its product or its competition to make a definitive determination. However, at least I and others will now have a chance to participate. Based on the market sector that CDEX has entered, it appears that CDEX may have more potential than most.
At least now we can participate. The other option could have resulted in years of delays. YEARS.
I wish you luck on this investment, just as I wish all Loch shareholders all the luck in the world. I am one of you.
AI
