These are not my words, they are from an attorney on another board:
"OK everyone ... I'm not much of a trader but I am an attorney. That doesn't really mean anything ... especially since I don't practice securities law. However, After reading as much of the 8K and attachments as I could in between court hearings, I have very little confidence in this play. Unfortunately, I still have holdings in two different accounts. I am hoping for a run tomorrow during which I intend to sell out.
"You might remember that when this first came out, I had some hesitation based on the sloppy drafting of the merger agreement between CVSU and FHAL. These Global Funding Agreements are no different.
"The biggest and most easily identifiable red flag is in Paragraph 2 of the Global Funding Agreement. You will note that the two middle paragraphs are bracketed with the word "NOTE" at the beginning of the paragraph. This is a FORM document that is supposed to use one or the other paragraph, not leave both in (with the brackets no less). They are alternate paragraphs depending on whether the Notes are discount or non-discount notes. Other "NOTE" paragraphs exist throughout the document but none are as blatantly bad drafting as these two bracketed paragraphs.
"Another red flag is that the agreement only becomes effective upon the receipt by Conversion Solutions of the bonds. Therefore, this may or may not ever happen. Thus, I suspect, RPH can avoid jail because the agreements are conditional, not set in stone.
"There are other flags raised (like how they can add the second bond to the same global funding agreement when there is no provision for added funds) but I don't think I am going to look any further. Remember this is a company allegedly controlling 2.6 BILLION in assets. I would think they would have an attorney that would at least look at the forms before letting them go to the SEC.
"Good luck to all of you holding CSHD ... I plan to be completely out tomorrow if a good run develops.
"This is not a recommendation to buy or sell stock SO DON'T RELY ON MY OPINION OF THE AGREEMENTS."
Odysseus crossed the river of Styx. He asked Achilles if it was worth trading his life to have his 'name' live forever. Achilles replies: "I would rather be the slave of a slave on earth, then to live here in Hades..." --Homer's The Illiad
