Did ya read this FRTN update from yesterday, the (ah-hem) 20th?
( Funny it cane out then, don’t ya think?) Yikes! Anywhooo, Here’s one of the excerpts I wanted you to see...
On August 23, 2018, the Company filed a complaint against Douglas Rink in the North Carolina General Court of Justice, Superior Court Division for Catawba County (Case No. 18-CVS-2382). In the Company’s action against Doug Rink, the Company seeks to invalidate 5 million shares of Common Stock and 350,000 shares of Series A Preferred Stock. The Company also seeks to invalidate 247,975 additional shares of Common Stock that Doug Rink improperly transferred to himself in connection with the settlement of a lawsuit with another party (Todd Rankin). Defendant Rink served as the President, CEO and Chairman of the board of directors of the Company from 2013 until his resignation on April 19, 2018. The complaint alleges that defendant Rink breached his fiduciary duties while serving as an officer and director of the Company and engaged in self-interested transactions to benefit himself at the expense of the Company. The complaint alleges that defendant Rink improperly issued shares of the Company’s common stock and Series A Preferred Stock to himself without the vote, consent or approval of all the members of the board of directors of the Company. The complaint further alleges that defendant Rink mismanaged the Company’s operations and finances and that he misappropriated certain of the Company’s assets for his personal use and benefit. The complaint asserts claims against defendant Rink for declaratory relief, breach of fiduciary duty, constructive fraud, unfair and deceptive trade practices, negligence, conversion and civil theft. Defendant Rink responded to the complaint on December 27, 2018, denying the allegations of the Company’s complaint and asserting various counterclaims against the Company, including a request for a judicial dissolution and appointment of a receiver. On March 1, 2019, the Company and Douglas Rink entered into a Settlement and Release Agreement whereby Douglas Rink would, among other things, on or before April 1, 2019 deliver to the Company all Company stock certificates in his possession or control, sign a stipulation of dismissal with prejudice of his counterclaims in Case No. 18-CVS-2382 and resign as an officer, director and/or manager of all of the Company’s subsidiaries. Pursuant to the same Settlement and Release Agreement, the Company agreed to, among other things, on or before April 1, 2019 file a stipulation of dismissal with prejudice of the claims in Case No. 18-CVS-2382 and pay Douglas Rink the amount of $175,000. On May 10, 2019, Douglas Rink’s shares of common stock and preferred stock of the Company were canceled. To the Company’s knowledge, the obligations of the Company and Douglas Rink under the Settlement and Release Agreement have been satisfied and the case has been dismissed.
