Replies to post #102756 on Crednology Holding Corp (fka COHO)

[CapGainsman]

Well said Glenn. Like you, I'm still dismayed that Orie would wipe out the existing shareholder base because he was both too cheap and lazy to pursue these shareholders with less than one hundred shares.

Offering $5 might have worked a hundred years ago. But what Orie is telling us is that saving the shareholders from this debacle was only worth $270 (54 X $5). The next step in my mind would have been to recognize that the offer was too low and then raise the ante to $25 and re-contact the shareholders with the increased offer. If that failed to entice 54 people, then he should have contacted some people by phone and asked what he needed to do to get them to sell their shares. Then raise the ante accordingly. For Orie to infer that he made a good-faith effort to avoid the reverse split, when his top offer was $5, is stunningly insulting. Give any motivated individual who can communicate effectively the list and a several thousand dollar budget, and this would get accomplished. It undoubtedly still could. Normally, there is a dire financial need to do a reverse split. This seems to be an entirely self-inflicted wound.

An announced reverse split waiting for FINRA approval is one of the terrible places to be in a pink sheet investment. It's a steady environment of pessimism and lack of buying interest in the stock, and the sad thing is we're only two days into this potentially long waiting period. Another thing to consider is that after the split, with only 210 million shares available, the stock will be highly illiquid with extremely wide bid/ask prices. Not easy to enter or exit.

But if we do get to the .0001s and a $210,000 market cap, then I intend to bid away. The coming crop of new investors with a little patience are the ones who will benefit.

[fliboyz]

I may be wrong here, but based on the wording of your post, I'm not sure you are following his rational as it is intended. I also thought the same as his strategy, but as claimed here makes no sense as it would likely be more counter productive than a viable strategy. IMO, He is not, nor was ever looking to destroy or eliminate current shareholders with real equity regardless of how big or small.

So, what is real equity? one may ask. The actual definition is quite subjective and largely based on one's motivation to define it one way vs. another. For example purely from a logical perspective, if it costs more in trade fees to sell it than it's face value, than it would seem that they could be considered worthless, or even a liability when you consider that the holder is assessed a reorganization fee in the event of a R/S. On the other hand if someone has reason to demonize the CEO or R/S process, say for example to panic someone into selling that may otherwise be on the fence; in effort to stimulate a sell to cover a short position; then those shares should be worth the price gold and robbing someone of such gold is an absolute crime against humanity and the CEO is a crook not to be trusted. And every rationalization in between.

That being said. For what should be somewhat obvious, when one gives it thought and consideration. The share registration exemption is only available to the smaller corporations on the grand spectrum of corporate size. In order to pragmatically separate smaller entities from larger, the SEC had to come up with some sort of scale and mathematical parameters to eliminate a gray area in the law. So their cutoff to qualify for the exemption is 500 shareholders of record or less.

Now, in the state in which COHO is domiciled, there are also pragmatic provisions within their corporate structure law. One of those seems to be geared towards situations such as this. Whereby, under the process of a R/S in a microcap security, if a holder ends up with less than ten shares post split(100 or less pre-split), unless said holder takes action and requests to remain as a holder of record(which they are entitled to do) they are no longer considered a holder of record, and dropped from the register(but are still entitled to their shares if so desired and can be redeemed under allowance of the law).

His objective is simply to have holders with negligible share counts based on current OS removed from the registrar, in order to fulfill SEC exemption requirements to complete his Reg. A offering without having to register the shares through the SEC. As that would also open another whole bucket of worms in the filing process and additional expense associated with it moving forward. As, if I understand it correctly, a registered offering also mandates that the company start filing everything with SEC instead of OTC alternate reporting as part of the deal(OTC filing process is simpler and less expensive for smaller entities that cant afford an in house legal team).

As stated, instead of just blatant disregard of an issue that he did not create, as all other R/S's have been under previous managements; he actually attempted to contact such owners with an offer to purchase their now somewhat worthless shares for $5 per lot. In a move that no other OTC CEO would likely have made, He has been criticized for his effort to avoid a R/S I have been criticized for mathematically defending his offer in what other's have stated is insulting at best.

With his offer they could have gotten $5 for their somewhat worthless shares. In PR he stated most didn't respond or had no interest, most likely out of hostility toward the company from actions of past CEOs. Some here felt he should have made it more worth their while to take the time with $25-$30 offer. The stupid irony is, not only did they not get the $5 he offered in exchange for 8 cents worth of essentially useless shares; as alternative of being flushed out if he would otherwise be forced to go through with R/S; as soon as the R/S hits, they will be assessed somewhere between $20-$40 reorganization fee by their broker. So if you take that element into consideration, he was effectively offering each a $40 net consideration for their otherwise subjectively worthless shares.

Also holding and hoping for the best. As fellow holder hope this helps ease the beef.

all JMO