Agree 100% HMbut the problem being, why would regulators force GSFC to do anything if this Rights Offering essentially giving the corporation away to GSFC was approved by the regulatory authorities.
According to the company, the Rights Offering was the corporations idea, and GSFC agreed to participate in it, including purchasing any shares left on the table. Thats exactly what they did.
GSFC and the directors at that time were the direct benefactors, so if it was all done above board how could the authorities force GSFC to liquidate their position.
The only way that would happen is if GSFC didnt actually pay for the shares, but it was stated by the company at the AGM that those shares were paid for in full by GSFC.
Would that not also make a statement that the TSX, OSC dropped the ball for not following up after receiving so many complaints?
The legal costs to fight it would drain the remaining treasury, and by default GSFC would retain the asset through creditor protection as the corporations largest shareholder.
I 100% agree creative solutions are required, but those solutions have to be realistic as well, and cant be realized without someone above admitting they dropped the ball or pulled a fast one.