Finjan Holdings Inc (FNJN)

[Det_Robert_Thorne]

The deal to buy PharmaSphere fell through

I don't know why they never consummated the deal, or why they returned the 3M supposedly non-refundable shares that were part of the transaction, but this is what they said about it in the 10-Q for the third quarter, filed back in November, 2012:

In February 2012, the Company’s Vertical Farming segment entered into a license agreement whereby the Company granted the use of the TerraSphere technology to produce medical marijuana. The Company received a non-refundable deposit of $40,000 for this license, which has been recorded as revenue during the three months ended September 30, 2012 because certain license terms were not met by the licensee. The Company also agreed to return a non-refundable deposit of 3 million shares of common stock in a publicly traded company, which was previously given to the Company for an option to purchase its PharmaSphere business.

http://edgar.sec.gov/Archives/edgar/data/1366340/000119312512465465/d398057d10q.htm

The weird thing about the refunding of those shares, in Feb, 2012, when they did the deal with privately held Hemp Deposit and Distribution Corporation, which then was the main financier of Medical Marijuana Inc -- the stock that was being using in the transaction -- the stock was selling for about $0.025, making those 3M shares worth about $75K.

By the time they refunded the shares in Sept, the marijuana stock was selling for nearly $0.06, and now, as I write this, it's selling for nearly $0.30, after peaking at nearly $0.50 about a month ago.

Which means that COIN management refunded "non-refundable" shares that were once worth nearly $1.5M, and are now worth about $900K, which is money they could really have used (especially to pay Gildea's salary for another year).