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Tibet Pharmaceuticals, Inc. Message Board

  • obaco2005 obaco2005 Apr 5, 2012 1:14 PM Flag

    Just This Common Sense

    Sometimes common sense works.

    Insiders own 74% and there are around 3.8 Millions held by outsiders which includes 3 million from the ipo, 150,000 shares issued or former CEO, shares issued to Trilogy, their lawyer and Fulcan Investment LLP.

    So it will cost the CEO around $11.4 Million to buyout all these 3.8 million shares at $3. The money raised form the IPO after fees is around $14.4 and as at their last Q3, the money was still sitting in the bank unused.

    My question is, why dont the CEO just borrow from the IPO money and payoff these Americans and walk away from the stress of a lifetime dealings with fraud and legal debacles.

    Ok, let's assume he thinks the $3 was too high he can cut it to say $2 and pay only $7.6 million. This is unlikely but I am sure there are people that would jump on it. again, this amount is significant less than the $11.4 million realized from the IPO and they can tap into the IPO money and payoff the amaericans and still have more left in the bank.

    Can you equate this little amount to the the stress, damage to reputaion for all board members and managements and potential of serving prison terms plus the potential huge legal costs defending thesmeslves for the next 5 to 10 years.

    Who thinks the same way?

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    • oba,

      The issue could be the other founders who are unwilling to vote for the offer and holding out for the IPO price or at least closer to. If true, it can drag on and on and on.

      Of course, tbet management should still fulfill their fiduciary duties as required SEC filing and inform shareholders (the rest of tbet owners) of status in a timely fashion.