Notes from my June 15, 2016, conversation with VLDI CEO - Part 13
Bruce said that he prefers to receive phone calls before 8:30 in the morning, or after 6:00 p.m.
Bruce said that since April 1st, VLDI has traded over 30 million shares [I have not checked his figure to make sure it is correct].
The short traders have been hunting for cheap shares to cover their position.
He spent several minutes talking about three large blocks of shares that he believes must be sold before the price can be supported. If I understood him correctly, he knows who the investors are, and he knows how many shares they are trying to sell.
In one case it was a block of 10 million shares, and the investor apparently gave his broker permission to control the sale. He did not have the sense to tell them not to dump the shares via a market order. If I understood correctly that was the block of shares that went for under two cents a while back. Bruce had already spoken to the guy, and told him that he could help him get a reasonable price for his shares, but the guy didn't listen. After the sale, he apparently called Bruce complaining about the low price he got. Guess that proves that some rich people shouldn't be trusted with money. LOL
He thinks there is a second player who still has 5.5 million shares that has apparently asked Bruce to make a deal with him for VLDI to buy the shares for $70k. Bruce turned him down because he cannot justify taking what little money VLDI has to redeem the shares if he has to sell out. And there may be a third player that has 4 million shares to sell, but it is unclear if he has made up his mind.
Bruce said they are forcing conversions of debt into shares. Creditors are being told that they have to convert their debt to stock, take cash as payment, or exchange the contracts for unsecured paper with conditions that are more favorable to VLDI. Validian is not renewing any of the old debt contracts. And there is a timeline on it, because the first ones to go are the interest bearing debt.
Some of the creditors never intended to hold through the buyout. They are lifestyle traders that invest for shorter terms, and lower ROI.
TPP
Answer a fool according to his folly, or he will be wise in his own eyes. (Proverbs 26:5)
