Management not holdingmany shares is always an issue with specstocks. But what I find more offensive is when management try to look reasonably paid but in reality are charging additional fees as consultancy. And with FP he owned the buiding and rented it back to the company. And when management are getting underwriting fees, etc. These are all tricks to get every last cent and not look over paid.
I dont know if management knew about the legals. But their are really only two answers to that. They knew prior to the deal and still went ahead. They gambled shareholders money on a highly risky play, or worse they benefited from taking on the risk.
The other option is they knew nothing about the legals. In which case they didn;t do adequate due diligence. They didnt do what they are paid to do and expected to do.
Now they are just a shell. And even after the consolidation it is hard to raise more funds. And the threat of further skeletons and further dilution will scare new investors away. It is a very long road back from here.
OGI Price at posting:
0.3¢ Sentiment: None Disclosure: Not Held