ABCI-MPHR-MTPH - Mark Baum CEO Hall of Shame.
This post just for the record, maybe it will remind some of us some day in the future.
Mark Baums personal ABCI-MPHR-MTPH retirement plan:
My main beef are his last "gifts" to himself. There certainly should be some kind of consideration for the "fair value" of a transaction. These transactions described below just should be considered "theft from shareholders"
Transaction A
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(all share amounts approximate)
1) Baum owns 51 Million shares out of 100 million
2) Baum RS's the stock 1:200, now MPHR
3) Baum now owns 250K shares out of 500K
4) Baum awards himself 4 Million shares to erase a $30,000 debt which was phantom in itself as it was created by Baum billing for his time at a lawyers rate.
5) Baum leaves a $10,000 debt for fun - see transaction 2
6) Baum now owns 4.25M shares out of 4.5Million
7) Conclusion: For $30,000, Baum awards himself 800% of the outstanding stock of the corporation. This means the effective market cap of the original post split 500K shares of MPHR was a total of $30K/8 or $3800 dollars
8) How can the SEC allow this?
This brings us to Transaction 2
9) Another reverse split of 1:25, now MTPH
10) Baum now owns 170K out of 180K shares
11) Remember that $10K debt, Baum does
12) Baum awards himself 300K shares to erase $10K debt
13) Baum now owns 470K out of 480K shares
14) Conclusion: For virtual $10,000 (billed by him), Baum awards himself 166% of the outstanding shares once again. This says the effective market cap of the original 180K MTPH shares was once again less than $4000.
By slight of hand, he now owns over 98% of the company, all shareholders completely shafted.
You can be sure Baum will sell the whole thing for at least half a million dollars (this time real). Then I am sure he will try this again with another stock.
I too had some ABCI and I can only hope that the keepers of the karma of life will provide Mark Baum his just desert.
If somethings hard to do, then its not worth doing - Homer Simpson
