As I noted previously, I think these guys got wrapped up with the "prospect" of a deal. They are a small unsophisticated team not experienced with acquistion discussions. They went public with the "discussion" too early, never released any information regarding their due diligence process to confirm LesKo's legitimacy as a buyer, never defined how Lesko positioned DMTN's assets within its portfolio of business (if a portfolio even exists), never published anything regarding Lesko's track record, an overview of LesKo's management team, who Lesko represents or why Lesko even approached DMTN. Their lawyers should have known better than to have let management publically advance such "speculation" without offering a greater degree of substantiation. You see this a lot with small companies who in the heat of the moment see an opportunity to create greater public awareness for their company because someone showed an interest in them. This was definitely handled like rookies were in charged.
I don't beleive this was a scam. DMTN management has the most to gain and the most to potentially lose. I don't beleive the Dino's were necessarily acting in bad faith, but do believe this entire episode was simply handled with poor judgement. At the end of the day, without a concrete written offer from a legitmate suitor, its just conversation.
AI
