A board that is AFRAID OF KNOWLEDGE frightens me. It should scare you too. A board with NO FRIENDS in the Investment Banking Community is as useful as a chocolate teapot.
This is a no-brainer: Vote “YES” to adding a Board Member with EXPERIENCE (Alex Keach) in the industrial hemp industry. This company desperately needs someone with HEMP EXPERIENCE on the Board because the company has 0 Board Members with EXPERIENCE in the industry we invested in. And it shows.
EOF is deep in debt, and has no hope of raising additional equity because the company has NO FRIENDS in the financial markets.
EOF is $20 million in debt to insiders (Barry Lambert and James and Cordelia Thiele). $11 million of that debt is due and payable by July this year, and there is NO HOPE of raising additional equity capital from the financial markets.
Rather than hiring an investment bank (the NORMAL way to enter markets) to raise the original IPO funding, Barry Lambert, raised the money from his “rich list” friends to…I don’t know, save a few dollars on the IPO? Barry Lambert cut investment banks out of the deal, so no investment banks will help EOF now.
No investment banks are going to do a secondary float for EOF.
So, what is the “real” motivation for the Board of Directors to not want a Board Member with knowledge and experience in the hemp industry? Maybe theywant to pay back Barry and the Thieles? THEN THAT GIVES THEM THE OPPORTUNITY TO LIQUIDATE THE COMPANY without the rich guys getting hurt?
In liquidation, a queue forms: debts to employees first, then trade debt, then “secured debt”, then “unsecured debt”, then last AND LEAST, shareholders. A bankruptcy would take care of these “elite” unsecured debt holders first, and leave the shareholders out to dry.
Maybe the board doesn’t want you to know this. The board doesn’t even want you to get a sniff of this, but it is a possibility.
Board Members afraid of knowledge frighten me. Vote “YES” on adding Alex Keach to the Board. Board Members: Would one of you please go buy an investment banker a beer down at the pub and beg a bit?
