Capstone Companies Inc (CAPC)

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I find it reprehensible, DD

Trying to grab a super voting control is bad enough. How did management lose a majority?

Answer: Howard forfeited over 120M shares to creditors.

Why did he have to forfeit shares?

Answer: The company owed him money for past loans made by him; they could not pay him back, in turn, he could not pay his creditors back.

Why couldn't the company pay Howard back?

Answer: Years of failed product launches. Bonehead products, in my view. Greeted with yawns by the purchasing public. Leading to years of annual losses.

So, the loss of majority control is a direct result of company actions.

Now, they want it back, not by buying up the shares on the open market, but by changing the Articles of Incorporation.

When you add in the fact that they will also give themselves $17M in liquidation preference, that's what makes it reprehensible, in my view.

Regards