Well Ninja, given DR's batting average with lawsuits/claims, it's reasonable to think that La Jolla will have to be paid off as well.
In addition to the complete dubiousness of entering into an agreement where, essentially, default was inevitable from the time of signing, the damage done by La Jolla could run much deeper: a quick check of the CTGI chart on/around the end of Jan. 2009 shows the final throes of the death spiral that brought the CTGI share price to its .07 levels. While there was a "no-short" clause in the financing agreement with La Jolla, once La Jolla claimed that the agreement was breached, what was to stop them from doing what they do best: shorting this company to its knees. And without DR and friends buying tons of shares last spring at .08 or so, who knows where this could have ended up?
Conjecture? Yup, but you know how these predatory lenders work. They have no qualms about wringing every last cent from anyone who runs afoul of them, in any way legally possible.
But back to the end game with La Jolla: if they paid Allison 2 million shares to shed $380,697, with a tab of $402,629.28 (+ interest to date), La Jolla's looking at a similar number of shares or better to settle at today's PPS.
And for those here trying to assess a $$ value for CTGI/LTC, do the math based on the shares given to Allison.
