Replies to post #5168 on H3 Enterprises Inc (HTRE)

[flsunchaser]

Very good points MBoomer17 and I know Cornell changed their name a while back to Yorkville Advisors, LLC.

Their financing terms and that of some others are so toxic, iHUB has a message board devoted to them. Here's the link :

http://investorshub.advfn.com/boards/board.asp?board_id=9964

Flsun

[ssc]

MBoomer, as I said in post #5153,

"Things like this can happen when small companies needing operating capital are forced into the worst types of financing arrangements."

The problem is this deal was arranged by the board, for the board, and then given to themselves, with a locked in price 50% lower than the lowest bid price. If the conversion is executed, it does nothing but guarantee themselves at least a 100% return, dilutes the holdings of all other shareholders, and has resulted in the current stock price of 6 cents. How is this in the best interest of the shareholders or the company? Can you honestly say you support this type of action by a board of directors? Can you even suggest that this type of arrangement does not violate the fiduciary duties of a board of directors of a publicly traded company?

I am still holding also, and am doing everything possible to prevent these 2 directors from giving themselves 20 or 30 million new shares because if it happens, I see no way that it can be a good thing for anyone except Chutjian and Freedman.

[Ymee]

Boomer-I am curious as to your account of my comment on post #5152 other than market makers just playing games. Thanks

[ssc]

Boomer, I found your statement that "deals like this are not uncommon on the pinks and often are much worse" very interesting. Since the whole point of my posts on this issue center on the conflict of interest that exists when the board members issued this note with these terms to themselves, can you cite some examples of other companies where the majority members of a board of directors have granted themselves rights to acquire a large percentage of a company's common stock at a 50% discount to the lowest price the public has paid? Since you see this as a common practice, it shouldn't be difficult for you to come up with a few. That certainly would help ease my concerns regarding the note.