Both crimes and torts have taken place.
Maxim as the selling agent for one or both convertible note holders and as the trusted advisor who brought both parties together and into the $20 million convertible note holder agreement has clearly acted in bad faith, violated the prohibition against shorting stock in RCPI applicable to the selling agent of the convertible note holders and engaged in a short selling scheme that appears top included to include front running, each contrary to and in breach of the agreement.
Company needs to use this breach in any and all future negotiations with convertible note holders. Breach can be shown. Terms can be amended. This could open up alternative financing.
In my opinion, company needs to use this in their and OUR favor. If they don't, I believe they might be liable as well.
I have written the company, I have complained to the SEC and FINRA. Others have as well, but really the best penalty is for the company to cease rewarding the convertible note holders and their agent by negotiating and making monthly debt payments with stock. Company needs to negotiate or sue for breach and receive, rather than pay damages for breach and change the provisions of agreement to make for shareholder friendly at the very least.
They need to address the breach led by Maxim in their negotiations and if needed they need to ask the FBI white collar crimes division to get involved, to ask the SEC, to report this to FINRA and to sue the other parties for breach of contract.
Please join me in writing the company and urging them to look into breach by convertible note holders thru agency of Maxim, CDEL or others, and which convertible note holders have ratified if they have continued to use, making their breach more certain.
The company can and should stop making payments with stock and negotiate out of agreement or sue for breach or both and get out of the agreement and line up and obtain alternative funding from more traditional and more shareholder friendly sources.
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