OWC Pharmaceutical Research Corp (OWCP)

[MjMilo]

Recently the company checked with the securities authorities in Delaware where the company is registered as there was a legal question raised as to whether preferred shares are voteable in a shareholder proxy vote.

The answer came back No they are not...

Also the A/S can only be amended by a shareholder vote.

So if you remove the preferred shares from the equation you can then see there is a major shortage of votes being cast.

The delay now is being caused by the dilemma that DGF now finds itself in.

If the company is shut down then they along with every other shareholder loses.

DGF has been both a friend and an enemy to the company.

Had they not converted so quickly and adopted a medium term outlook and not depleted all the shares in the A/s then we wouldn't be sitting here right now.

On the other hand had they not given the loan to the company we also wouldn't be sitting here right now.

The company was in the process of being shut down last spring.

DGF intervened through the courts as you know.

OW has now fulfilled the directions from the court order.

THis delay is all related to finding a way forward.

I know as of a few days ago DGF had stepped forward and offered to fund another 45 day round of voting..sending out ballots all over again and hoping for a different outcome.

Is this realistic to think that the results could be any different?

Ziv is willing to work with DGF....


I can tell you that the overwhelming opinion is to shut the company down now just as it was in the spring before Ziv arrived.

He doesn't want to do it and harm all common shareholders.

So we have a delay until a way forward is figured out.