Replies to post #109853 on World Surveillance Group Inc (fka WSGI)

[coastiretired]

Just open the link and drop down edit - find on this page - and type telesat.

But here goes. . .

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director. In January 2007, the consultant became President of the Company, and the then monthly consulting fee of $5,000 per month was increased to $7,000 per month.

Growth Enterprise Fund (“GEF”)

As part of the GlobalNet International acquisition, GEF acquired approximately 60% of the Company’s common stock and all of its outstanding mandatorily redeemable preferred stock. In addition, as part of the GlobalNet International acquisition, the Company issued a note to GEF for $500,000. This note was repaid during the 4th Quarter 2003.

On January 5, 2004, the Company secured a contract with Global Telesat Corp., a wholly owned subsidiary of GEF, for worldwide termination of voice and data mobile satellite telecommunications traffic originating in Iraq. In conjunction with securing this contract, the Company issued 300,000,000 shares of common stock to International consultants valued at $21,000,000. The Company did not derive significant revenues from the Global Telesat Corp contract, the consultants failed to fully perform the contractually required consulting services.

In December 2003, GEF offered to sell shares of Company stock owned by GEF to the Company’s newly-hired president at a discount from market price. In March 2004, the newly hired president resigned, and has represented that the purchase offer was not consummated. Upon the resignation of the president, GEF granted a replacement International president an ownership interest in an entity controlled by GEF. Upon the replacement president’s resignation in May 2004, the Company paid a severance of 15,000,000 common shares, valued at $420,000, and the ownership interest in the GEF entity canceled.

Mandatorily Redeemable Preferred Stock Adjustments- in late 2003 the Company agreed with GEF that the original issuance of Series B Preferred Stock was an error, and agreed to issue only a single Series A Preferred Stock to GEF. In December 2003, in contemplation of a default on its mandatorily redeemable preferred stock, the Company agreed to modify GEF’s conversion option from “upon default” to free convertibility at GEF’s option. In March 2004, the Company agreed to reduce the conversion price from $.0074 per common share to $.0016 per common share.

In 2004 and 2003, the Company recorded losses on these deemed debt extinguishments of $308.5 million and $64.1 million, respectively. The Company also recorded derivative expense on the embedded derivatives of $129 million in 2003, and derivative income of $482.7 million in 2004.

Agreement to Convert Preferred Stock- as discussed above, in April 2004, the Company and GEF agreed that all accumulated payments on the mandatorily redeemable preferred stock through June 30, 2004, would be converted to Company common shares. In June 2004, approximately $1.1 million of preferred stock and $650,000 of accrued interest were converted to approximately 1.1 billion shares of Company common stock at a price


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Here's another quote from page 39.

"Commencing in late 2004, the Securities and Exchange Commission (the “SEC”) conducted an investigation of the veracity of information disclosed in various Company press releases issued from December 2003 through March 2005. The Company has fully cooperated with the SEC and will continue to do so if requested. The investigation may result in civil liabilities to the Company for violations of federal securities laws, which would have a material adverse impact on the Company’s financial condition."