Replies to post #32121 on Global Digital Solutions Inc (GDSI)

[powerbattles]

I think Rontan realized they cut a bad deal and wanted out last minute. GDSI calling Rontan bluffing by filing an 8-k and threatening legal action. There are no valid reasons in the contract for Rontan to terminate the agreements. On top of that, Sullivan has made sure Rontan isn't allowed under the contract to renegotiate a better deal. If they back out the deal, they could end up paying a break-up fee of 15% as stated on the agreement. This estimated up to $50-$75 million. In this case, Rontan doesn't really have any choice because they signed a legally binding contract under US law with a specific performance provision. Therefore, when the plaintiff has such a clear cut case like this, Rontan must pay ALL legal expenses. On top of that, there is a specific performance clause in the contract that means GDSI can take over Rontan.

According to SC777

There is no valid legal argument for Rontan to terminate they can't even claim breach of reps and warranties by GDSI because GDSI is literally making 3 reps in the document - that they are organized, that they are authorized to enter the transaction and that their stock is duly issued.

There is a reason why Sullivan has a good track record of a good businessman. He is head of the game in this situation. This battle is a win-win situation for GDSI. Imagine if Sullivan issued a PR stating it has a solid case to win a $75 million dollar judgment or legal right to take over the $164 million dollar company, then
at what PPS will you value GDSI stock?

In my humble opinion, this case isn't any difference. It's just how you view it that is all. I don't see why we are panicking to sell. We should reevaluate the situation and think before you give away your shares at the lowest level.