I think I may have come across a little different then how I intended.
What I meant by "hysteria" is as one person says something and then repeats it, etc.. a la "telephone" game, it creates a life unto itself.
While you most certainly right to be upset over the lateness, to suggest that a transfer agent in another state or state that a company "allowed only 4,000 shares to trade" is 100% incorrect.
Perhaps the reason for an extend release of claim is to cover ALL possibilities of a lawsuit. If you were in the middle of a business transaction, would you not want to make sure your attorney did everything they could to protect you in a situation that was obviously heated? I have not seen any of the paperwork and do not know a single person involved here. I only found this site from a search online. My opinion and my opinion only is the company is at least attempting to correct a wrong. I was involved in something similar years ago and had no real choice but to sign. The consequences of not signing far outweighed the potential risk of signing. As a debtor of any company that has gone through a corporate restructuring, you stand to be left on the side of the road with a collection notice and no entity in which to pursue a claim. It seems that $5.00 is a magic number somehow, if that is the case there are several proactive options you may have. Someone mentioned that they are owed $100,000. From what I gather, you are going to receive 20,000 shares of stock. Having been in your position, quite unfortunately, I would either sign the papers and hope for the best or ask management what kind of "deal" can be made to get your cost basis down. Maybe they would let you purchase stock at a discount to the current market to get your cost basis down.
While you may not trust management a single iota, there are several reasons to believe that it is no where near as dire as you seem to think. Registrar Transfer is a super credible entity. If it was some small transfer agency out of someone's home, then I would be worried. The stock HAS been as high as $20 per share as little as two years ago. The lack of volume is good and bad news. Obviously, your liquidity is not great because of this, but it also shows that there is no real overhang to the market. If you look at the chart on the stock, it came down on little to no volume. Any positive news or "street interest" would seem to have a very positive effect on the stock. The company has done work with credible companies and continues to do so.
I would also suggest caution when listening to legal advice. Is the attorney you are speaking to going to get a fee to pursue this? If it is such a strong case, they should have no issue with taking it on consignment. Watch how fast their interest subsides. I have a very poor view of attorneys and I am sure it shows here, but they get paid to send of the same letters you are probably doing for free. Many people want to "help" you for a fee. The attorney that you spoke to regarding this matter, are they an SEC attorney? Not that they are familiar with it, do they specialize in it? If so, they should know the corporate counsel. Certainly a friendly call, attorney to attorney, should be able to straighten out much of the confusion.
The SEC is pro-active since the Madoff case. The company reports their financials to the SEC quarterly. It just seems to be a frustrating situation that is leading people to think that their is an hidden agenda. Not that this is/should be a concern of yours, but what if the company is inundated with calls and threats? It would make sense that they can not spend every day speaking to people in regards to the same matters when nothing has changed. We just past the end of the quarter, good luck getting ANY CFO on the phone as they race to get their quarterlies out in time. If there are ten people in the same position as you are and they all call twice a week, it amounts to a lot of time. One call can take 30 minutes and it eats up a large amount of office time.
At the end of the day, it is your choice as to whether or not you sign the agreement. I would only offer you do it with the true facts and not allow your emotions, justifiably so, not interfere. If a company can not afford to repay a debt and they offer a conversion to equity, it is probably the best option you have. I am sure many of you have been backed into a corner at one time or another financially. If you can not pay a bill, no matter what the bill collector says, you are not going to pay the bill.
I believe the products are solid and can be easily sold. If that is the case, maybe in 2 years, the stock could take out the highs of $20 and then you would be up substantially. It is easy for me to see things since I have no financial interest at stake. My experience has been people that are on the take, NEVER try to make good, just string you along. The fact that you have paperwork now proves they are trying.
Sorry if I came across harsh, everyone's money is valuable to them and in no way was I trying to sound arrogant about it.
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