Posted On: 11/22/2014 4:27:53 PM
Post# of 7769
A very interesting observation taken from the 10Q, SCRC had taken a strong stand against WholesaleRx, which SCRC had a 14% stake in the business.
1. As of August 6, 2014, WholesaleRx stopped making payments to the Company and stopped providing the required financial information for calculation of the 14% fee. Accordingly, on October 8, 2014 the Company filed a Complaint in the State of Delaware for the unpaid amounts owing. At the same time, the Company joined with a 40% shareholder, giving them a 54% voting interest and they have jointly filed a derivative action in the Tennessee courts seeking return to the Company of funds alleged to have been improperly withdrawn by management, a 40% shareholder. In addition, the two shareholders (including the Company) have called a shareholders meeting with the intent to change the Board of directors and management. Based on these actions and current information available the Company does not believe the investment to be impaired. ( per 10q)
2. On November 10, 2014, new management was installed as a result of the Board meeting. No significant assets were reduced and with the change of management our current agreement will resume, consequently no reserve for our outstanding receivable or reserve for our investment was considered necessary as of September 30, 2014. (per 10q)
My observation with this is that this CEO and Management team are not intimidated from using Legal actions and can seek other alternative means to an end to protect and enforce legal contracts and assets of rightful ownership to SCRC.
An excellent move and thank you SCRC FOR PROTECTING MY INVESTMENT.
1. As of August 6, 2014, WholesaleRx stopped making payments to the Company and stopped providing the required financial information for calculation of the 14% fee. Accordingly, on October 8, 2014 the Company filed a Complaint in the State of Delaware for the unpaid amounts owing. At the same time, the Company joined with a 40% shareholder, giving them a 54% voting interest and they have jointly filed a derivative action in the Tennessee courts seeking return to the Company of funds alleged to have been improperly withdrawn by management, a 40% shareholder. In addition, the two shareholders (including the Company) have called a shareholders meeting with the intent to change the Board of directors and management. Based on these actions and current information available the Company does not believe the investment to be impaired. ( per 10q)
2. On November 10, 2014, new management was installed as a result of the Board meeting. No significant assets were reduced and with the change of management our current agreement will resume, consequently no reserve for our outstanding receivable or reserve for our investment was considered necessary as of September 30, 2014. (per 10q)
My observation with this is that this CEO and Management team are not intimidated from using Legal actions and can seek other alternative means to an end to protect and enforce legal contracts and assets of rightful ownership to SCRC.
An excellent move and thank you SCRC FOR PROTECTING MY INVESTMENT.
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