Is Shinn trying to pull something here?
LITIGATION WITH SHINN—BACKGROUND:
HTTD is currently involved in litigation with its former CEO Ronald Shinn and former Secretary Gerry Knight, due to their transactions of questionable legality that were contrary to the interests of HTTD’s shareholders.
On May 2, 2003 International Foam Solutions, Inc.(“IFS”) completed a share exchange agreement with Shinn, and Oklahoma companies Hard to Treat Diseases, Inc.(“HTTD”) and T-19, Inc.(“T-19”). Shinn was to receive stock in IFS in return for 100 % of the stock in HTTD and T-19.
Pursuant to the share exchange agreement, Harvey Katz resigns as President and CEO and Shinn becomes President and CEO.
As a condition of the share exchange agreement, the name of the publicly traded entity owning all three companies was changed from International Foam Solutions, Inc. to Hard to Treat Diseases, Incorporated.
Pursuant to the share exchange agreement, on May 9, 2003 Shinn and his wife are issued 350 million restricted common stock shares of HTTD.
On June 30, 2003 Shinn issues himself an additional 175 million restricted common stock shares of HTTD.
On August 18, 2003 Shinn issues himself an additional 5 million restricted common stock shares of HTTD.
During his tenure as CEO of HTTD, Shinn stated to me and others that he was very interested in selling HTTD in order to convert his equity stake to cash.
We were unaware that the Tubercin® toxicity testing was completed on October 8, 2003 and that the results were favorable, but we later discovered that Shinn was aware of the results on October 8, 2003. On October 13, 2003, Shinn, his wife, and Knight resigned.
On October 15, 2003 Shinn, acting through his lawyer, sent a letter to HTTD through one of HTTD’s shareholders stating his intention to rescind and terminate the Share Exchange Agreement dated May 2, 2003. He also tendered the original stock certificates for the 530 million restricted shares of common stock. In essence, Shinn wanted to unravel the “merger” of a publicly traded company.
Hence, we are involved in litigation with Shinn. I’m confident the outcome will be favorable for HTTD or I would not be sitting where I am working for the shareholders.
SHINN’S 530 MILLION SHARES:
The original stock certificates for Shinn’s 530 million shares are in escrow, frozen and non-voting. The shares have not been cancelled yet, they are part of HTTD’s issued and outstanding stock! The certificates are not cancelled because they are part and parcel of the terms of the share exchange agreement, which is binding and provided the company with 100% share ownership in HTTD and T-19.
