Replies to post #69042 on Worldwide NFT Inc (WNFTD)

[Yolo]

I trust your legal analysis - in looking at the Calasse lawsuit - I don't understand why it caused Sharp to halt all business with WNFT.

I don't believe the lawsuit would have made any difference no matter who won. Correct me if wrong.

I have followed many patent infringement cases where there was Billions of dollars at stake and the Attorneys handled the lawsuit but it was business as usual for the company they didn't stop all business.

I can understand why they wouldn't move forward while the lawsuit was pending, as it really would make a difference. Calasse owned preferred shares that gave him complete control over the company, including whether any new shares can be issued. If the court determines that they were canceled improperly, there are three possibilities:

1- at a minimum, he would have the equivalent of 600M shares of WNFT (current OS of 535M). That would likely make WNFT unattractive without reaching a settlement first. Obviously Sharp could have settled everything and moved on...

2- Arguably, Calasse would still have control of the company. He would have the same number of preferred shares and more common shares than Sharp. While Sharp tried to issue himself shares with supervoting rights, I don't think he did it properly and all preferred shares have the same voting rights.

3- This would require further litigation, but I think Calasse could turn around and cancel Sharp's shares as being issued improperly. Not only were they issued without consideration ("CEO services" my ass), but Sharp never received permission from a majority of the preferred shares (Calasse) to issue new shares. If the district court looked at that issue, it could retroactively cancel Sharp's shares.


As you can see, the outcomes range from doubling the OS to Sharp (or the merging company) losing control of the shell completely. They would be stupid to continue business as usual, whereas the litigation you mention only involved monetary issues.

But they would also be stupid to not settle if they were worried about any of these issues. Which is why I don't think Sharp ever had a merger candidate lined up.