Why would anyone think the deal isn't dead? Let's start out by addressing a major point. First off, why would any respectable company even want to take a company by force? If they do bind Rontan, who is going to want to do business with them? It's not like they do good business without Rontan... They have a staggering number of 0 contracts. Secondly, say they do take them by force, GDSI sure will have a hard time managing Rontan from another hemisphere. How could they possibly help Rontan out of debt when GDSI is on debt themselves? The only logical answer I have heard was to gain access to the U.S. Market. Yet, that's a poor answer considering GDSI stated their intent to dump all 26m in shares in a 8k...
Now let's cover why the takeover with force is highly unlikely. For starters, since it's an international company, U.S. Law has little weight... In fact, if fully pursued, the contract will be looked over by a council of both countries. That being said lets talk about why the SPSA has no legal binding. 1) 26m worth of shares valued at $1. Clearly this stock isn't worth even close to $1 and the only way to satisfy this is to do an emergency RS. Not good for investors. 2) the contract clearly states the involvement of General American Capital Partners. You really think these guys are going to take on such a big risk on such a big deal with the SEC hot on GDSI's trail? No, their job is to minimize risk.
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