Bergamo Acquisition Corp disclosed
through the financial statements prepared (at the compilation but not reviewed or audit level) by L L Bradford and Company clearly stated that they started 2012 with negative retained earnings.
This is obviously a surprise to all shareholders given the support that management placed behind the previously issued financial statements which showed abundant ample profits.
This raises some serious questions as to the existence of good accounting and management systems at BGMO. Further, there are some ethical issues regarding saying one thing (generous and sustainable profits) and the compiled statements effective stating that what you were given before was not correct.
The financial statements would clearly imply that the company had no cash going into 2012.
In the press release announcing the high yield investment program (not the first such undertaking by BGMO), the profits would be shared but BGMO's share would be locked up for a year. Assuming that it is real, it is better to say that we have a restricted investment rather than cash as the latter implies that their is something to spend.
As a smaller investor, courtesy of the higher purchase price I paid, I am appalled at our leaders going out and making deals and publicly releasing the details and knowing full well that they did not have the cash to close under the terms of the deal.
They had no cash and will not for some time yet according to the National Wealth announcement.
