Regarding all the speculation regarding CXO, their contracts, the importance of the date of 6/30/08, Torvec delaying the announcement of deals, and the criticism of JG......
I called headquarters and spoke to JG and Dick Sullivan to get the facts. Here's what I know.
The official date that Torvec fired CXO as officers of the company was 8/19/05. On the same date JG was elected CEO and Gary S. was elected Chairman of the Board. On that day the stock closed at $2.45.
Sheriff.....the decline from $5.60 at the 2005 shareholder's meeting until their firing happened under their own watch.
Then on 10/26/05 Phil Fain and Read McNamara resigned from the Board of Directors. And on that day, the stock once again closed at $2.45
From the close of trading on 8/19/05 through the close of trading on 10/26/05 the stock traded 1,032,600 The stock hit an intraday low of $1.15 on 10/24/05, just two days prior to the above resignations.
My personal opinion is that CXO attempted to time their resignations to a drop in the share price, which they themselves were looking to cause by selling all of the consulting shares they received.
However, CXO failed to consider the resolve of long-term shareholders like myself, who on 10/25/05 were in the markets buying thousands of shares at artificially depressed prices. Hence the volume of 176,000 on 10/25/05 and the rebound in the closing price of the stock to $2.16 from only $1.30 the day before, and then right back to $2.45 on the day they resigned....the same price as on the day they were fired.
Ok, enough about that and back to the facts.
By the fall of 2005, litigation had started between Torvec and CXO regarding the validity of CXO's employment contract, with Torvec claiming that they were not valid.
Regardless as to the contracts validity or not, the CXO contract included language that stated the contract could be terminated by either party on 6/30/06 so long as both parties were given 6 months prior notice to such a termination.
Consequently, in the Fall of 2005 Torvec sent a registered letter to CXO officially notifying them of the contract termination, thus meeting the requirement of having notified them more than 6 months prior to 6/30/06.
Torvec sent this letter so that even if a court eventually decided that the contracts 'were' to be found valid, that the contracts would still have been terminated on 6/30/06 thanks to the official letter having been sent as mentioned above.
In June 2006 a lower court determined granted CXO a 'summary judgement' which stated that CXO won the rights to the warrants.
Torvec appealed and in March 2007, the appeals court decided that the lower court was wrong in their decision to have granted CXO the warrants. The appeals court decided that both parties would need to start the legal process all over from an even playing field.
Throughout it all, the courts have never made any determination of whether the contracts between Torvec and CXO were valid or not.
But again, regardless as to their validity, CXO was fired on 8/18/05, and notified of their termination through official means in the fall of 2005, thus ended their contract with the company effective 6/60/06, which cut all official ties between the two parties.
So any of the thoughts and comments about 6/30/08 having any meaning whatsoever to Torvec or their shareholders is completely false and 100% bogus.
And although some have suggested that the stock has dropped 50% since the time that CXO left the table, I would respond by saying that the facts speak for themselves, and the stock prices is trading at the exact same level today that it was when CXO was fired. So there's just no truth to that statement at all.
Also, I have stopped at headquarters 3-4 times over the past 8 weeks, the most recent of which was yesterday, and I am absolutly certain that they have not been waiting to announce a deal.
One final set of facts.....at the time Torvec fired CXO in August 2005 the company was only in discussions with the Chinese, after having failed to remain in the DARPA Challenge.
However, it was only after CXO was fired that Torvec has somehow started working with Nissan, NASA, Lockheed Martin, Ford, General Motors, Camoplast, and the US Air Force, not to mention many others who have signed confidentiality agreements, but who's names we currently don't know. I have to believe that Chrysler, Eaton, Paccar, and many others remain well informed of Torvec's progress though.
Interest in Torvec has never been higher. The Air Force has ordered an FTV, and they are traveling around the country showing others a video of our FTV while telling them how advanced the FTV is compared to our competition. Nissan & GM are both seeking to put the ISO-Torque differential into their cars. Numerous other racing teams are begging for their own test differential. Ford was just as blown away with the completed FTV during their own visit in May.
One announcement changes the game......just one.
Maybe it's Nissan buying a couple thousand differentials.
Maybe it's Ford buying the whole thing.
The bottom line is that Torvec and their technologies are in play thanks to the current management team, and that's good for all shareholders.
AI
