CardioVascular BioTherapeutics (fka CVBT)

[walhall]

The current troubled state of Cardiovascular Biotherapeutics – Updated

With efforts by unknown parties to obscure the true situation at Cardiovascular Biotherapeutics (CVBT) by making anonymous, unattributed claims to all sorts of wonderful developments for which there is no independent validating evidence, there is benefit to reviewing facts on the ground that can’t be disputed which paint a very different picture:

Here is a summary of the key points, with detail provided below:
1. According to CVBT's bankruptcy judge, CVBT is unable to pay its debts as they become due.
2. CVBT is insolvent.
3. CVBT’s management team are almost all part-timers with other jobs/consulting work, who are almost all past retirement age, yet are in positions that should require full-time effort.
4. CVBT’s CEO Calvin Wallen III is being sued by the U.S. government bankruptcy trustee for fraud and alleged theft of $14 million from his previous company.
5. According to CVBT's leadership, none of CVBT’s clinical programs have advanced in the last year, based on leadership’s report at the 2019 annual meeting. However, this is simply a continuation of the status quo since 2007.
6. There is almost certainly a crisis of corporate governance at CVBT.

In greater detail:

1. CVBT is unable to pay its debts as they become due according to Judge Gary Spraker in 2019 in the recent CVBT involuntary bankruptcy case.

2. CVBT is insolvent. In spite of the fact that anonymous comments indicate CVBT has minimal debt and a strong balance sheet, CVBT refuses to issue an audited financial statement. Why not? I believe this is because CVBT’s mountain of debts have not been re-paid or discharged by settlement and thus are still valid liabilities of CVBT in accordance with GAAP (generally accepted accounting principles). Instead, Mr. Wallen and others have publicly stated at CVBT’s shareholder meetings that the “legacy debts” are all beyond the statute of limitations and thus not collectable. So this suggests that CVBT has simply removed them from the balance sheet. Poof, they're gone — magic! Maybe such questionable accounting treatment qualifies under GAWAP (generally accepted Wallen accounting principles), but it does not meet the standards of GAAP and thus independent auditors. Until we see an audited financial statement that provides an unqualified auditor's opinion and reflects the anonymous claims that CVBT has minimal to no debt, it is reasonable to conclude that CVBT still has a mountain of unpaid debts and remains an insolvent company.

3. CVBT’s management team are almost all part-timers with other jobs/consulting work who are almost all past retirement age, yet in positions that should require full-time effort. This almost certainly reflects CVBT’s inability to afford full-time talent in the prime of their careers as is the norm in the biotech industry. Additionally, almost no one on CVBT’s management team is located in Dallas.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=148216646

4. CVBT’s CEO Calvin Wallen III is being sued by the U.S. government bankruptcy trustee for fraud and alleged theft of $14 million from his previous company, and his upcoming trial (which Mr. Wallen has successfully delayed for nearly 1.5 years now) is likely to take place in early 2020.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=150365915

5. According to CVBT's leadership, none of CVBT’s clinical programs have advanced in the last year based on leadership’s report at the 2019 annual meeting. However, this is simply a continuation of the status quo since 2007. At the 2019 annual meeting, CVBT indicated that the timelines to manufacture the drug and re-start the heart, wound healing, and PAD trials are now exactly 1 year later than the corresponding timelines that were provided at the 2018 annual meeting. That means that in the last year, CVBT has blown 100% of the timelines it laid out 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.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=149029245

6. Reasonable observers can conclude there is a crisis of governance at CVBT, because the Board of Directors has taken no public actions to separate or protect CVBT from Mr. Wallen’s alleged illegal activities. It is difficult to imagine that any investors would seriously consider investing in CVBT when the CEO is accused by the U.S. government of having stolen $14 million from the previous company he ran (into bankruptcy), and has an upcoming trial that he has repeatedly delayed. There is no evidence that the Board has taken appropriately prudent actions insisting that Mr. Wallen step aside temporarily until the matter is resolved one way or another. As such, CVBT is likely in an ongoing crisis of corporate governance in addition to all its other problems.


If you’d like to better understand these and other relevant issues, you may wish to review this information:

Here is a link to Part 1 of the series on the CVBT disinformation campaign, fraud, and bankruptcy:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=150306865

Here is a link to Part 2 of the series on the CVBT disinformation campaign, fraud, and bankruptcy:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=150622197