Replies to post #13583 on Electronic Game Card, Inc (fka EGMIQ)

[JUSTHESOLFACTS]

Here's my read between the lines, my opinion only.

"Lord Steinberg dies. Cole is fed up that KD has spent up to 3 mill. on marketing and no return yet. He cuts off the cash to the US by moving the cash somewhere else. KD and Anna aren't being paid. KD and Anna try to confirm that the cash is there repeatedly. "It's no longer where it used to be" says Mendoza accounting firm. Mendoza pulls the opinion as something stinks to high heaven in the UK. Schiff also can't get written confirmation from Boyne on share count. Schiff also smells that things stink in the UK. Bye-Bye, he says to his friend KD as I don't need this. KD calls the SEC and alerts them that there some hokey pokey being done with the cash. Meanwhile because the cash is cut off from the US, the Poken deal is dead as EGMI didn't come thru with the cash investment for Poken. Anna removes herself from any potential liability as she couldn't get indemnification which she requested. Can't blame her there. BOyne, Cole, Anna resign. Big New York guns hired, Price Waterhouse, Sherman LLp and Anderson as KD and Grannus Advisors are looking to salvage what looks to be an intact company."
This is where we are now.

[Infromthecold]

So if we take these two letters at face value, what do we now know?

We know that US operations are spending (expensing) 300K a month while EU operations are generating 9MM a year from licensing.
At least one director could not find out how much cash the company had for months but she does seem to confirm that the cash was there as of last Sept 30, 2009.
US bills and salaries were not being paid from November 2009.

At least one director was unsure how many shares of stock have been issued.

New management and sales team have not generated any sales or income in over a year of being on the job.

The deal in EU has "reverted" to a licensing deal generating $9MM a year. Anyone know who this license might be with?

If these statements are true, how could anyone not think this is good news? If true they remove the doubt that this is a going concern generating real cash and that, as of last September the cash was real.

Management turmoil and chaos can be sorted out. Stolen cash and nonexistent business is hard to cure.

[JustjplusPja]

Could all of this legal attention being focused on EGMI be putting any pressure on L.Cole’s H1B visa status? It doesn’t appear that he is a US citizen. Maybe he has left the US?

http://tinyurl.com/yyfm9sb

[HokiePokie]

I haven't posted in a few weeks but have been lurking... I still hold my shares because I figured the amount of my investment I'd get back by selling at .15-.20 isn't worth it. I'd rather take my chances (there is the risk that this will go to 0) and hope that it will go up in the long term.

After reading the letters of resignation I feel a little bit better about my decision. Although, the quote from Anna's letter that you found was one of the things that stuck out to me too when I read it. How can there be arguing if one of the arguers hasn't been seen or heard from?

I hope Lee Cole's statement of "With regards to the net assets of the company, at the last Q these were stated as $26 million. When the company's financial statements for the Year Ending December 31st 2009 are presented I am confident the net assets of the company will be in excess of this figure." is true. That gives me some hope and since his resignation letter was dated on Feb 25 it was probably the basis for the PR that Linden released in early March stating that he expected no material changes.

I was also encouraged that he said he "will continue to cooperate with the company until all recent regulatory questions are rectified". But the thing that concerns me is what amount of trust can we really attribute to the statements of Lee Cole?

Sorry if I'm babbling... just writing what is on my mind after reading everything today.