CardioVascular BioTherapeutics (fka CVBT)

[walhall]

CVBT annual meeting news: complete stasis, involuntary bankruptcy, and the CEO's upcoming fraud trial.

Here’s what Cardiovascular Biotherapeutics actually told us at the 2019 shareholders meeting: Take the timelines that CVBT’s leadership indicated a year ago at the 2018 shareholders meeting to manufacture the drug and re-start the heart, wound healing, and PAD clinical trials, add 1 year, and those are the new timelines Mr. Wallen laid out on Tuesday May 21, 2019.

That means that in the last year, CVBT has blown 100% of the timelines it told us in 2018, and has made no forward progress on these fronts since then. Calvin Wallen never acknowledged or explained any of the delays, he just acted as if there were none and all is going according to plan.

Here’s what was NOT said at the meeting: CVBT is still fighting the involuntary bankruptcy action by CVBT creditors. I believe CVBT is one court decision away from having a bankruptcy trustee appointed by the court and then being liquidated. Having looked further into the matter, my best guess is that there’s a 50/50 chance the involuntary bankruptcy will be granted and a trustee will be appointed to sell off the assets to pay creditors. CVBT is grossly insolvent based on GAAP (generally accepted accounting principles). However, I believe CVBT’s leadership maintains that CVBT is entirely solvent based on GAWAP (generally accepted Wallen accounting principles). Further, there was no mention of Calvin Wallen's upcoming fraud trial that starts on October 28, 2019. This matters because I don't know how many investors are interested in being involved with a company where the CEO has been accused of stealing $14 million from his previous company as well as reportedly creating falsified documents and presenting them as truthful to the bankruptcy court when they were not.

Additionally, Calvin Wallen III stated that CVBT is raising money at $3/share. That gives CVBT a valuation of at least $900 million. Wouldn’t it be great to know how many investors have invested at that price? CVBT refused to tell us, but I believe I know the answer: zero. When involuntary bankruptcy hangs over any company, no one will invest at any price. Further, with CVBT’s CEO facing a fraud trial brought by the U.S. Bankruptcy Trustee in October 2019, I doubt anyone is even talking to CVBT until the matter is resolved. And even without those two, no rational person would value an insolvent company like CVBT at anywhere near $900 million. I believe this explains why all the dates have slipped one year from what CVBT indicated at the 2018 shareholders meeting.

For the record, CVBT refused to answer the 3 questions that a number of us shareholders asked at the meeting (see post #764 for those questions). Here’s what Calvin Wallen said: “We would like to tell everyone as much as we can. But the more we speak to, the more we expose ourselves to other entities pirating our science and our work. There are certain things we are just not allowed to talk about. Therefore we have to hold those things close to ourselves.” Do any of these 3 questions sound like they have anything to do with that? Of course not. So what is CVBT trying to hide? The answer, I believe, is that CVBT is trying to hide that it’s bankrupt, incapacitated, unable to move forward, and is on the verge of shutting down for good. It would not be a happy outcome for us shareholders were CVBT to close its doors for good, but I believe that’s going to happen sometime in the next 12 months.

My prediction: 2019 was the final shareholders meeting. I believe CVBT will not be around in May 2020. Let’s hope I’m wrong.

Here are the court records in CVBT’s still-pending involuntary bankruptcy:
https://www.docketbird.com/court-cases/Cardiovascular-Biotherapeutics-Inc/nvb-2:2018-bk-15410

And here are the links to the Calvin Wallen bankruptcy and fraud cases referenced above, where Calvin Wallen is accused by the Bankruptcy Trustee for Tauren Exploration (the company he was running prior to CVBT) of allegedly stealing $14 million from Tauren and allegedly falsifying documents and submitting them to the bankruptcy court to cover his tracks:

Tauren Exploration, Inc. Liquidating Trust vs. Calvin Wallen III:
https://www.pacermonitor.com/public/case/24021776/Tauren_Exploration,_Inc_Liquidating_Trust_v_Wallen,_III

Tauren Exploration, Inc. Liquidating Trust vs. Pandale Holdings, Inc. et. al:
https://www.pacermonitor.com/public/case/24021775/Tauren_Exploration,_Inc_Liquidating_Trust_v_Pandale_Holdings,_Inc_et_al

Tauren Exploration, Inc. Liquidating Trust v. Fossil Operating, Inc. et al:
https://www.pacermonitor.com/public/case/24021777/Tauren_Exploration,_Inc_Liquidating_Trust_v_Fossil_Operating_Inc_et_al