VIDWRX INC SMDWF

RE:Conference Call Summary

[rokman919]

In addition to was Johnny TSX wrote:

Trying to save the co. from receivership
GF is not wanting to run VIDwrx again
CEO position still open
Steve Hancock (RIP) was unable to complete financing. Was not able to restructure debts.
THe co. was not financable and it was run into the ground
Operations have ceased in May. All production stopped.
$3M+ in debt including $500k owed to CRA and $300k secured against GSA
Several employees have filed complaints and have left the co.
The positives:

The co. has $25M of tax losses; could create value to a buyer
The co. will be forced into receivership OR simply cease to exist and delisting would occur very soon without immediate action. Filings to occur very soon.
The co. still has 600+ clients. There is still a chance to recover if someone can save it. Basically relying upon investors.  The co. still has $2.5M in back orders.
Needs $170k to be saved and restructured and restarted. The money needs to come from investors.
Some key managers are willing to stick around to help out while others have left.
Basically, the co. HAS to go into receivership and totally restart. Ultimately, anyone able to save the co. wouldn't as they would likely feel there's no point in saving current shareholders as it doesn't make sense.  It's best to let the company go into receivership, restructure and restart in order to have the greatest chance at recreating investor value.
60 day timeline after bankruptcy, then a restart could take place; ie, new money could start to come in to fund new growth.
Google and Yellow Media are still clients
CRA payments would likely last 6 less than or equal to 6 months.
No office space now. All shut down. Just a virtual company.

Recovery Corp.  - speculation on how the company could be recovered.
if a 4:1 roll back = $0.08 / share
Possibly much higher price if converted before new money comes in.
Would need to get to less than or equal to 40 million shares to attract financing. Currently at 100 million shares.
The co. was a  Top 10 actively traded co. on the TSX
Rick Shultz (CFO) has resigned and won't be brought back in
July 10th deadline to raise $170k

There were 56 participants in the conference call and GF was experiencing technical difficulty with orchestrating the audio.  When everyone's microphone was unmuted, feedback and echo was rampant making it difficult to hear anyone speak, even though only 1 person was speaking at a time. Caller put a hard question to GF about the callers investment and GF basically said he is no longer interested in running the company.  Caller said he didn't know the company had $3M in debt. GF said that info was made public every quarter. Caller asked why GF wouldn't help save the company with his own money. Caller insinuated GF was profiting from the investors. GF stated there was no such profitting from investors and that if this line of questioning continued, he would end the call. Caller pushed a little more, GF pushed back and the conference call was ended.