All right, let’s go over some facts as I see them from court records, etc over the past 2 years.
XTend is approached by Lee to merge the companies and form a new company to bring the BioHarp to market. Lee doesn’t have the proof of money he spent over the past 14 years so the company can get the proper value, so Lisenby changes it to an Asset Purchase so the company gets $27.5 million in value. XTend signs an agreement with Lee and hands over 541 million shares of stock for ALL the assets of the BioHarp. Lee never performs on his side of sending everything so the company sues him for specific performance. Lee, having his board of directors in control, actually has a member of XTend’s board, go out and hire an outside attorney and fights the agreement and says they don’t want to go through with what Sam signed. So the two parties finally end up in Chancery Court but decide to go to a settlement to put everything in the past and move forward. Lee, Lisenby, and Friedman sign the Settlement and the company waits for Lee to perform, once again, and send everything over to the company so they can move forward, go through an audit that’s now 18 months behind, and begin selling the BioHarp. XTend once again waits for Lee to send everything and he doesn’t come through. Doesn’t matter if Lisenby tried to clean up the preferred shares, that’s not illegal to do nor did it have any bearing on the settlement. If Lee was pissed, he should have called a board meeting and brought up the share issue, not file a case against XTend and Lisenby and Friedman.
So now we’re back in court arguing about things that should have been settled within the company if Lee had any sense of how a corporation runs. Lee forced XTend into BK because he didn’t follow through TWICE on his promise to send over the assets WE all paid for with shares in the company. Lee calls Lisenby and Friedman on July 3rd and wants to put all this behind him and settle it AGAIN. So they go back and forth on documents for 3 months. Lee feels that the security interest Knobbe Martens has, not assignment of the patents, is not legal and wants XTend to release the security on the patents. Why would the company even consider that? Just take your shares, take control of the company, boot Lisenby and Friedman out, and get on with business. If you control the company then have the board designate the direction the company wants to go. Don’t punish all of us who have faith in the company and think you can just walk away without repercussions.
I just don’t get how anyone keeps blaming anyone except Lee for the demise of the stock, company, and our investment. At the time of the original APA, the company was flush with cash, had all kinds of leads to sell the BioHarp, and was ready to kick some butt. Whatever reason Lee gives is all bull. He’s a liar to all of us because he signed a deal and then decided to not follow through with his own lawyer’s contract. You can blame Lisenby all you want but seriously, the guy has stayed in there and fought for every one of us who owns shares. He didn’t just fold up and go away and do other things. He fought for what’s right and I’m sure has left him wondering why Lee continues to just ignore his responsibilities in following through on his word and have people crucify him when he’s been looking out for all of us.
I guess we’ll find out on Monday what the judge thinks and I’m sure he’s going to be upset at everyone. I hope it goes to trial and then Lee, Lisenby, and Friedman can get up on the stand and tell their story. I know one thing: look back at all the court documents and read them; Lisenby, Friedman, and XTend have not changed their story once. Can Lee claim the same thing? I don’t think so.
