Veltex Corporation (VLXC)

[invest1980]

Paul, Lets talk about your theory:

"Matin lost control of this asset thru notes he signed putting his asset as garanty but having the right to get it back whevever he could payback his notes."

First, the Veltex Textile Mill by virtue of being a "wholly owned subsidiary" is not Matin's asset, but rather an Asset of Veltex Corporation, a public company (which as you know trades on the pink sheets). By being a shareholder of Veltex Corp, Matin has a claim on this asset, along with other shareholders of Veltex.

Now how exactly does Matin lose control of Veltex Textile Mills? If Veltex Textile Mill is a wholly owned subsidiary, then all the outstanding shares of Veltex Textile Mill are owned by Veltex Corp. So if this is true, he did not sell shares of Veltex Mill to anyone else to lose control. If we assume he got a loan and used the Mill as collateral, then the loan should appear in the financials for the Veltex Mill (there is a Notes Payable Current Liability of $3,050,214 on Balance Sheet of Veltex Mill).

But when someone gets a loan, they still own the assets and the cash that is generated by the assets (as long as they don't default on the loan agreement). The Veltex Mill has
$8,327,526 in cash on its balance sheet, enough to pay the short term note payable twice over (assuming that is the loan in question).

Based on the provided information (if accurate), your theory can not be true, unless..........MATIN is lying his ass off and Veltex Corporation does not own Veltex Mill in Bangladesh!!!!