Full docket text for document 67: RESPONSE in Opposition to Motion re:  MOTION for Michael B. Carlinsky to Withdraw as Attorney . . Document filed by Securities and Exchange Commission. (Pollock, Sheldon)
The SEC has posted a 4 page objection to the withdrawal of Quinn Emanuel on several grounds. To mitigate those arguments (supported by precedents) the SEC has asked that the Judge require Quinn to continue their representation until a default judgment is finalized. The cite, among other reasons that Zhao's claim that he had no funds to pay for his defense is unsupported, as is Quinn's claim that unpaid legal fees are due and uncollected.
The ball is now with the judge..
From court documents...submitted today
"Second, Mr. Zhao’s recent actions have violated the Court’s Order Following Default
Judgment Hearing (Dkt. No. 464) (the “Order”), which set forth the requirements for conditional
denial of Plaintiffs’ motion for default judgment against him. One of those requirements was his
personal attendance at a mediation. Just days before the mediation that had been scheduled on
February 17, 2015, Plaintiffs and the other Defendants were informed that Mr. Zhao would not
attend, resulting in the last-minute cancelation of the mediation."
Zhao has gone home...
He has not paid his attorneys and has withdrawn from his defense in writing. His defense law firm has petitioned the court to withdraw.
Zhao's reasons are that he does not have the money to continue his defense. he has also said that he has no intention to engage again.
So that's it for this rather long drama.
I expect the class action to continue to pursue the underwriters. The result of that is somewhat questionable.
I further expect the SEC to start revocation procedures and to fine and sanction Zhao and Zhu in the SEC case.
well, I sure don't recommend selling it at these prices.
You would get 14 cents for your 1400 shares.
There is a very remote chance that it could regain some value, depending on what happens, but tossing that aside, should it be revoked you can make a call to your broker, have it removed from your account and take your write off in the year it was revoked.
I am not sure what you know.
It would take my writing of a small book to catch you up on events...
You can sell your stock, there are buyers during the week, but it takes time and is a worthless exercise for 1400 shares as the fees will cost you more than your stock is worth.
Actually, nobody knows.
Fun to speculate, but I think it's safe to say that the end of the road is close at hand.
We are awaiting the results of a out of court mediation.
I would not put too much emphasis on that device...
For them, it's only a means to a end.
Holding companies are designed to grow through acquisitions. Unfortunately for them and investors, they failed in that attempt and were forced to pay debt via the sale of more and more securities to add to the swaps they had made trying to acquire businesses that proved to be bad investments.
So they blew it.
The post split situation resets the clock back to near zero, so the value in the company is not the thermometer which is a low volume import product only sold to professionals..The value is as a venture startup with a listing.
It's going to take them some time to restore investor confidence enough to stop selling and return to buying the company as it should be bought, and that is a risky but potentially profitable startup medical related holding company.
Putting any investment emphasis on the marketing of a imported device to niche professional market is totally ridiculous. That's not where the future for them is. It never has been. They will try to grow this segment by adding other devices, but it will not be where the future growth/profit potential will be.
This current class of bagholders will be replaced by another group of risk investors looking for a longer term gains to be cashed in somewhere down the road. The SP will stabilize and begin to move up at some point, But it will take a bit of time.
The day trading aspect of this stock is over for now, and that is what I do, so my interest here is also over.
However, it should not be too very long before they find a suitable acquisition to restart the process.
Maybe this time they will do better...and maybe not....
dsong....The Sanomedics "thermomedics" division is a marketing business. It is not a tech company as apparently you seem to believe or perhaps they have led you to conclude.
Unlikely......I can tell when a pinky is going under and this one has quite a way to go before you worry about that..
I have one still trading at .0001.....been there for three years..
It's the Taidoc TD 1241...by the way
I think Taidoc does that for them.
By the way.....Thermomedics was never a consumer device maker..The thermometer is, as I said, a niche product for professionals.
I'm guessin you did not read my post....
I said that boat sailed already..
By new tech, I don't mean thermometers....and I don't necessarily mean consumer products, which is a very crowded and risky thing to get into unless you have the connections and they don't.
I guess we will see what they do...I don't have a clue as to what they (he) is thinking..
I don't recall that they ever inked that deal..
As for the thermometer....It will likely always remain a niche product for medical professionals. It was never a consumer product due to price. They certainly could have made a consumer version but they missed that boat and it has sailed as they did not have the resources to do it. I suppose they could enter that market now, but by the time they get in it would be very crowded.
Perhaps a better solution lies in newer tech....
Now that they have reset the table and re-racked the balls..They have to reclaim their image and trust, which will take some effort but it's certainly been done before.
They now are back to square one as a more experienced startup.
I can't pretend to know what the right thing is for you to do, but if you have not yet realized your loss, you might just hang on to it and see what the future looks like in terms of a opportunity to close out your position. This reverse split has reset the table and re-racked the balls.
Like any holding company, they can change direction at their whim . So I would just wait to see what they come up with. In day trading language, "just wait for the pump to start".