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Insight1

02/18/16 4:14 PM

#77374 RE: Pegaso #77370

I doubt it, I actually asked Robert this when I talked to him but he didn't say anything to it.

Think about it this way, if the company gets sold at this point, someone is buying it largely for it's contracts. They don't really have any assets. However, most of their contracts (I am assuming here) they secured through their SDVOSB status. An ownership swap would eliminate this status (if they even still have it), and potentially jeopardize the contracts they do have (which is why we need to figure out if they still have it or not).

Sym's locked himself into a poor position here, he can't deal the company or raise capital easily through the sale of stock because of the SDVOSB designation (maybe why it appears they've dropped it?). He has to give up that status, AND preserve the contracts to sell the company.

Unless they get bought out by another SDVOSB, in which case, they could just spin off STS and EBC and stick them under some other corporate umbrella.