Blade1973"if its a scam, then why is it legally binding"'Here is...

Blade1973

"if its a scam, then why is it legally binding"'

Here is how I see it:

The agreement, the same for MDA/AEX/EDM, contains a few 'safeguards' to prevent funding to be requested.

Once the upfront free shares is made, when the companies request for the first advance, they will realise that the free shares would have almost up to the 9.9% limit of the shares that AGS would hold under the agreement. The company would need to issue more shares to dilute AGS's holdings in order to reduce the percentage. By doing so, the SP will drop. Then they would realise that there is another conditions where below certain SP (0.9 for EDM, 1.4 for MDA and .3 for AEX) AGS is not oblige to issue funding either.
And then they would realise that AGS is also dumping shares immediately to push the SP down at the same time.
But in accordance to the agreement signed by A Hamilton, AGS has done nothing not specified in the agreement.

So A Hamilton paid lots of free shares to AGS with no funding in return. Then when he realised he had been had, he terminated the agreement and threatened to sue.

But in the termination clause in the agreement he signed, it clearly stated that AGS and LCLTVF are to be indemnified for everything and the shares issued cannot be canceled and are not refundable. Furthermore, there is a clause to waive any claims of liabilities personally for all Directors of AGS.

The whole agreement had been well thought out to cater for all the expected sequence of events and legal implication by AGS Capital.

If you ask why they could do it over and over again to so many companies? The confidentiality clause in the agreement!
In fact, in accordance to the agreement, no one should know the details. Ironically, the local solicitors for AGS who filed the F604 inadvertently attached the confidential agreement for all to see.

I think it is the same deal that Western Gulf Advisory are doing with a lot of companies except that this is the first time we get to see the details of the agreement (a work of con art IMO) thanks to the filing annex.