Related Person Transaction leads me to query ...In March 2013, the Company entered Loan Agreements with East West Bank of California, USA and In March 2013, the Company entered Loan Agreements with East West Bank of California, USA and China Development Industrial Bank in Taiwan for respectively $2,500,000.
My question is why D Lee not asked the Company to settle his $800K but turn to sell it to Ironridge ? For sure Ironridge only buy debts at good discount, meaning Lee will get a lot LESS than $800K for assigning the debt. If Lee were not the insider of the Company like other creditors, I would have no query on him.
For sure as the Chairman and CEO of the Company, Dickso ought to have good knowledge and understanding the kind of implications and consequences from his debt assignment. And yet he resorted to sell his loan at discount. It seems to me that either Lee was selling his loan in distress or LLEN's cash flow position was not suficient to settle such amount, not even the discount amount received by Dickson! Of course, this is purely my speculation.
In my humble opinion, I always have strong reservation that Dickson should concurrently hold the position of Chairman and CEO of the COmpany. We have experienced waves of criticisms concerning LLEN's transparency, investor relations, financial arrangements, changes in operations and disclosure. I believe this is most like the result of top two positions being held by same person, whether this is by Dicskon or not. LLEN should separate these 2 positions to be held by different competent professional managers. Dickson should either take the Chairmanship or CEO, not both!
China Development Industrial Bank in Taiwan for respectively $2,500,000.
My question is why D Lee not asked the Company to settle his $800K but turn to sell it to Ironridge ? For sure Ironridge only buy debts at good discount, meaning Lee will get a lot LESS than $800K for assigning the debt. If Lee were not the insider of the Company like other creditors, I would have no query on him.
For sure as the Chairman and CEO of the COmpany, Dickso ought to have good knowledge and understanding the kind of implications and consequences from his debt assignment. And yet he resorted to sell his loan at discount. It seems to me that either Lee was selling his loan in distress or LLEN's cash flow position was not suficient to settle such amount, not even the discount amount received by Dickson! Of course, this is purely my speculation.