RE: Comical "Arrangement"Ihave never posted on a blog before; an associate of mine sent me a link to thissite, very interesting and disturbing at the same time. I invested in thiscompany years ago, I thought it was an interesting technology but I don’tunderstand what happened. The company raised money to build a media business,and then started investing in “clean energy” markets.
NowIMC is EMB, a clean coal company and the stock is going up (down after the newsof permits), somebody must be telling someone what is going on. I have been following the public filingsand I can’t find anything until this announcement, obviously the companies/peoplebuying the stock must know something more than the permits, is a governmentgrant about to be awarded? What about the shareholders who bought and sold stockwithout the same information? So aslong as everyone seems OK with it I guess we are fine, but in reviewing thepublic filings there were a few things that didn’t seem right and this board islucky there is no Sarbanes-Oxley to contend with in Canada.
Ireceived my special meeting package and it looks very legal, intimidating andconfusing. I don’t feel like I’m getting the whole story and it’s differentthen what was previously disclosed.
1)The board and management are taking care of themselves, it seems veryincestuous and I am surprised that the auditors have not flagged thisissue.
a.Over the eighteen months leading up to June 30, 2010, Albert Lin waspaid $480k by FV, for what? the document indicates another FVunitholder and board member of company was paid $275k to orchestrate thefinancing or for “marketing and financial services” in 2008 and 2009. 12% ofthe financing was paid to insiders, which would not be acceptable under SOX.
b.FV Management implemented a “control group” agreement between FVmanagement, Andersen and Lin just before EMB’s acquisition of FV, it onlybenefits the four of them, they received 675,000 units of FV for nothing. Howis this in the best interest any shareholders, EMB or FV? Why would EMB management even beinvolved in a control group?
c.Personal investments of $200,000 in FV by Andersen and Lin in 2008became worth $1,050,000 in June 2010 after the same guys invested $6,000,000 ofEMB money to fund the project and then they negotiated to buy FV for $23million?This would not fly here in the US.
d.EMB management also issued themselves 6.5% of EMB outstanding shares inoptions, for past performance, taking care of themselves in FV, selling thecamera business or the T3 write off?
2)After investing in T3 motion the company has now written off theinvestment to the tune of $3.4 million saying they don’t expect it to be worthanything. If you write off theinvestment, then what is the likelihood of getting the $1,000,000 loanback? The same EMB Board members(Andersen and Lin) were shareholders in T3 as well, who made money there?
3)What happened to the media company? It was to go through a strategicreview, as a standalone business it looks like it was building momentum, the financials in the annual report show that Q2 10 it was profitable andthen there was an announcement to change the name to EMB and spin out thecamera business.
4)The company is going to need cash, they lost more cash last quarterQ1/11 ($1.962) without any revenue from the media business, the media businesslost half that ($1.060) all last year.
Afterreading this blog, it looks like this company/board has one agenda, making theboard money, whether it is “how do you spell dilution”, the “CFO day tradingtheir own stock” (where do you find this information?) or the comical arrangement,they are starting to smell.