Tauriga Sciences Inc (fka TAUG)

[clearmont88]

it's not that all!!!

It's that you make these very one sided "black and white" claims, suggesting that the Company has been intentionally hurting shareholders, and so on and so on.

You also continually try to make excuses for Cowan Gunteski, and you state that Tauriga basically was to blame for what happened

You also seem to think that there was no malpractice, that Cowan Gunteski acted flawlessly, and somehow Tauriga should have predicted that this disaster was going to happen in late July 2015

You omit so many facts, that are really clear and incontrovertible, and you do it in a manner that basically makes it seem like Tauriga made all of this up out of this air.


Let's discuss Dilution for a moment ---


1) Dilution - Tauriga's two outstanding Notes as of July 31, 2015 were directly affected by the malpractice and delisting / and the conversion terms and principal amounts were contractually adjusted due to the penalty clauses.

Unless you are arguing that tauriga knew about the malpractice the entire time (which Bill Meyler's publicly disclosed deposition clearly refutes), then that dilution has to be attributed (at least to a degree) to the conduct of the predecessor audit firm


2) Dilution - The Company's share price plummeted following July 31, 2015 as did its ability to secure capital and contemplate a potential acquisition.

Therefore, the company had to issue additional shares (at much lower prices), to secure some additional help and settle some outstanding issues. This is, indirectly, at least partially attributable to what happened (although there may be no exact formula to value such)


3) Quote from your earlier post

"Note that the above period began months BEFORE the company lost its OTCQB status and months AFTER it became current with OTCMarkets. Also note that as of the date that TAUG lost that status the company was ALREADY out of compliance with the OTCMarkets standards.


"Let's not forget nearly 1 billion shares of dilution."
Yes, I think we should forget about nearly 1 billion shares of dilution. It's nonsense.
I wonder how many of those 457 million shares for "services and compensation" went to the author of that statement?
Many things have gone into the dilution of Tauriga's common in the last few years. "


Response:

July 13, 2015 - just ten days prior to the PCAOB Censure, Tauriga issued a press release naming Seth Shaw as its CEO.

(http://www.prnewswire.com/news-releases/tauriga-sciences-inc-appoints-mr-seth-m-shaw-to-positions-of-chairman-and-chief-executive-officer-and-ms-ghalia-lahlou-as-interim-chief-financial-officer-effective-immediately-300112018.html)

The Company made no secret of its business plan (at that time) to enhance shareholder value. Read paragraph # 4

"This morning the Company has announced its intention to fully divest its natural wellness business within the next two months. In addition, the Company is actively evaluating several potentially lucrative acquisition opportunities. The Company will be working tirelessly to both restore and create shareholder value and looks forward to updating shareholders with respect to progress as soon as practicable."

------------

THE FACT OF THE MATTER IS that Tauriga made a management change (replaced Stella Sung with Seth Shaw) and Shaw's decision was to evaluate and complete potential acquisition(s) to create shareholder value. Would that have been successful or not? It's hard to predict with a strong degree of certainty, such an outcome.

But the Company never got the chance, and quite frankly, it should have had the chance. The Company should have been notified, by Cowan Gunteski, about the malpractice and potential consequences (that we all know played out). Between August 2014 and July 23, 2015, Cowan Gunteski knew about the malpractice and pending PCAOB action(s) and deliberately chose not to notify the Company while simultaneously billing the Company a lot of money $ and even demanding more money from the Company specifically for the purpose of again issuing an independent verification opinion for the FY 2014 audit of the financial statements.

FY stands for Fiscal Year

Whether you want to agree to this or not, the Company entered into two convertible notes right before its delinquent SEC filer status, because it had no inkling that it was at any risk of becoming delinquent.

There have been many hundreds of millions of shares of dilution that can be attributed to the applications of penalties and defaults charges, to these two notes. I'm sorry - but that is not fair to the Company nor is it fair to blame management for these default penalties. That's like blaming a victim of a hit and run for walking across the street instead of the drunk driver who sped through a red light.

The Company also had to spend the next 18 months focusing on staying alive, catching up on a multitude of delinquent quarters, and finding a way to prosecute a complex and lengthy federal lawsuit. There are indirect damages built into this, because the Company should have had a fair chance to complete an acquisition as disclosed (as the business plan) in that above mentioned July 13, 2015 press release

The last thing I will correct you on, because it's getting annoying, is to correct you on your assertion (quoting you directly) that "Also note that as of the date that TAUG lost that status the company was ALREADY out of compliance with the OTCMarkets standards."

This is untrue. The Company still had time to cure the minimum share price requirement (and perhaps would have done so, if it could have completed an acquisition - which it never got the chance to). But even if it weren't able to, the Company could always have enacted a Reverse Split in order to cure the share price deficiency. In fact there was probably close to a 0% chance that the Company faced a delisting due to the minimum share price issue. It's one of the few things, that is directly within a management's control to fix.


You have repeatedly stated that Cowan Gunteski never did anything wrong and that Tauriga is to blame for everything under the sun.

We can agree to strongly disagree.

There is a lawsuit that has been filed (a long time ago) that may come to a conclusion one way or the other, within the not too distant future. There will be a result or decision once all the facts are contemplated. I would strongly doubt that Cowan Gunteski's legal counsel (Ronald Herzog) is nearly as confident as you are about Cowan's prospects should this case go to trial.


Seth is trying very hard to build a valuable company long term. And IHUB posters should not constantly project on this message board that his intentions are somehow evil or unethical. That is absolutely despicable to continually suggest something like that.