Electronic Game Card, Inc (fka EGMIQ)

[pegasus1]

Personally, I don't understand the need for hiring the investment banking firm for purposes of 'raising working capital funds'. That implies there's not enough cash. Even if LC took over the cash account to protect the company, how can you make that argument when you've crippled it to the point it needs an investment banking firm to raise funds?

Couple that with the auditors inability to confirm cash, and it makes me wonder if something didn't happen to the assets, such as being put into other investments that tanked, or invested with a firm that isn't reputable. Who knows. It just doesn't make sense.

As to KD's level of authority, hiring a turnaround company might fall under board approval, I don't really know. CEO's typically have a lot of latitude to execute contracts, but generally the board might have a $ threshold requiring their approval.

Doesn't sound like they have much of a board left anyway.

It will be interesting what comes out in the wash. We might learn more from the investor lawsuits underway once the subpoenas start flying. Will take a long time though.