Joint venture with N3D? Huh? Today's press release states: "RBCC believes that its joint venture partner’s technology is on the cusp of becoming standard equipment in cellular research labs around the globe."
RBCC has no such "joint venture" with N3D which makes this statement (as well as all previous press releases) a lie. All joint ventures are initiated by the parties' entering a contract or an agreement that specifies their mutual responsibilities and goals. All joint ventures also involve certain rights and duties. The parties have a mutual right to control the enterprise, a right to share in the profits, and a duty to share in any losses incurred.
From RBCC's financials, it is clear that RBCC's involvement with N3D is merely a 5% equity stake in their private company via a Stock Purchase Agreement, a company which does not actively trade shares in a liquid market - there is no mention of sharing in control of the company, profits, nor losses - RBCC invested the grand total of $413.62, with the promise to pay weekly installments of $5000 until the full purchase price of $249,826 is paid.
Read here the details:
On March 13, 2012, we entered into a stock purchase agreement (“N3D Stock Purchase Agreement”) with Nano3D Biosciences, Inc. (“N3D”), a Texas corporation that has developed a unique concept in three dimensional cell research tools. Under the terms of the N3D Stock Purchase Agreement, we have agreed to acquire 604 shares of common stock of N3D, representing approximately 5% of the outstanding shares on the date of the agreement, for a price of $413.62. The total purchase price of $249,826 will be paid by making weekly payments of $5,000 until fully paid. We may discontinue payment of the purchase price at any time by providing written notice to N3D. This would result in our owning fewer than 604 shares. Rainbow Biosciences, LLC will continue to research opportunities into the bioscience markets.
From the financials ending Sept. 30, 2012, one would expect to have seen these weekly payments show up in the Cash used for Investment - somewhere in the neighborhood of 26 installments ($130,000). The financials show ZERO used for such activities.
