InvestorsHub Logo

stockseekerok

08/28/16 4:51 PM

#36505 RE: MrBlackLungs #36503

Rontan already had access to U.S markets. They had a operation in Florida that had been there for many years. So they did not need GDSI to access United States Markets.
The other Ideas floated was Rontan needed GDSI to go public as a traded company on USA markets. Even when the SPSA was signed back in october 2015 a .002 trading company is hardly a lucrative public trading company.

If GDSI could have wrapped up the Rontan Acquisition it may well have been a good deal for GDSI, but I am not sure even closing that deal can salvage the damage done now that the SEC is involved.

However regardless the rumors floating that GDSI is still working on the Rontan deal all signs indicate the only work to do is to try to figure out how to make Rontan pay the termination of the SPSA penalties expressed

AISI304

09/05/16 8:48 PM

#36644 RE: MrBlackLungs #36503

"Why would anyone think the deal isn't dead?" Thanks, MrBlackLungs.

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.

Original: www.otcmarkets.com/edgar/GetFilingHtml?FilingID=10960354

Rontans termination: http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11310853