RE:Could be a reverse takeover in playI find these scams all the time on Stockhouse. Players take a dead company and trade some shares amongst themselves to create a little volume. They spread a creative rumour to call the CEO, which no one does because they are either too shy or too lazy. Finally they create new Stockhouse ID's to spam various other bullboards with "volume alerts" and "it's breaking out to 10 cents". 400k shares at .005 is $2000 Traded back and forth only costs trading commissions Anyone stupid enough to pay 1 cent rewards these guys with a double, it's that simple.
This company is worthless as a shell because it has a lawsuit and unpaid invoices, also that simple. The odds of someone wanting this dead tech, imo is slim to none.
ITEMS UNDER DISPUTE During the year ended December 31, 2018, the Company has received $479,457 of vendor invoices with respect to consulting and management fees, which are currently under dispute. It is management’s position that either such services were never received or the amounts charged for such services in relation to the level of services received is not reasonable. As such, these vendor invoices have not been recognized as expenses for the year ended December 31, 2018 as management does not intent to pay such amounts. There is a potential that such vendors may seek legal action against the Company for failure to pay these disputed invoices. It is management’s belief that they would be able to legally defend any such claims against the Company. However, the outcomes as to whether there would be any legal requirement for the Company to pay such amounts is currently not determinable. LEGAL ISSUES The Company has received a statement of claim from a former officer with respect to wrongful dismissal, claiming they are owed for payment of outstanding fees in the amount of $77,392, as well as damages of $650,000 plus interest and costs. Management believes it is possible they will be held liable for the payment of outstanding fees and have accrued a reserve for $75,000 for the potential payout of such amount. Management, however, believes that they will be able to successfully defend the claim with respect to 5 damages and costs and as such have not setup any reserves with respect to such amounts. The outcome of this claim is currently not determinable. As at December 31, 2018, the Company wrote down its intangibles to $nil. The Company has decided to perform this write down given the current financial position of the Company as well as the legal issues surrounding its intellectual property. Such legal issues pertain to a claim served by the Company against two individuals who have misappropriated the Company’s intellectual property that was created during their tenure with the Company. The outcome of this claim is currently not determinable.