Martin is trying to capture market share in a new industry, so I see fast action and aggressiveness is a positive. As a shareholder I appreciate his zeal.
1. I think 2TRG was far from smooth. We thought it would close months before it did, so yes there was a lot that went into the deal. I wouldn't say that it must have been in disagreement, or neither party would have signed the final details. As an experienced CEO and with his track record of M&A i dont think he misunderstood any aspect of the deal. If EWSI sued first, then maybe 2TRG didnt come through on something that they promised. Now, the former owners are apparently suing EWSI for not paying the rent that was delinquent before the sale of the assets.
"From the 8k
Section 7. Debts, Liabilities, or Obligations Assumed. Buyer shall not assume, take subject to, or agree to pay or perform any debt, liability, or obligation of Seller existing as of the date of Closing, or arising out of events occurring or circumstances existing prior to Closing except the Assumed Liabilities as detailed in Schedule 2."
It seems that the previous owners thought the rent was an assumed liability but it was not mentioned in the contract. If 2TRG's attorneys didnt read the contract carefully, I cant blame Martin for getting a great deal on the assets. As i mentioned before, he got 5 million in assets for around 1.5 million. awesome! So it doesnt seem like it was EWSI's responsibility but I will leave that up to the court to decide.
As far as being a black eye, business get sued all of the time. Apple, Google, Cisco, etc etc. So i dont think it hurts the business. investors are going to care more about the balance sheet and i think most would appreciate him being a bull in the negotiation room.
2. I dont think a company can discuss particulars with an auditing firm before they are hired, so there is no way that Martin could have known this would happen. This is why you always see the following verbiage when a new auditor is hired. " On December 30, 2013, upon approval of the Board of Directors, the Company engaged Malone Bailey, LLP as its principal accountant to audit the Company's financial statements as successor to Sadler Gibb. During the Company's two most recent fiscal years or subsequent interim period, the Company has not consulted with the entity of Malone Bailey, LLP regarding the application of accounting principles to a specific transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's financial statements, nor did the entity of Malone Bailey provide advice to the Company, either written or oral, that was an important factor considered by the Company in reaching a decision as to the accounting, auditing or financial reporting issue.
1. I think 2TRG was far from smooth. We thought it would close months before it did, so yes there was a lot that went into the deal. I wouldn't say that it must have been in disagreement, or neither party would have signed the final details. As an experienced CEO and with his track record of M&A i dont think he misunderstood any aspect of the deal. If EWSI sued first, then maybe 2TRG didnt come through on something that they promised. Now, the former owners are apparently suing EWSI for not paying the rent that was delinquent before the sale of the assets.
"From the 8k
Section 7. Debts, Liabilities, or Obligations Assumed. Buyer shall not assume, take subject to, or agree to pay or perform any debt, liability, or obligation of Seller existing as of the date of Closing, or arising out of events occurring or circumstances existing prior to Closing except the Assumed Liabilities as detailed in Schedule 2."
It seems that the previous owners thought the rent was an assumed liability but it was not mentioned in the contract. If 2TRG's attorneys didnt read the contract carefully, I cant blame Martin for getting a great deal on the assets. As i mentioned before, he got 5 million in assets for around 1.5 million. awesome! So it doesnt seem like it was EWSI's responsibility but I will leave that up to the court to decide.
As far as being a black eye, business get sued all of the time. Apple, Google, Cisco, etc etc. So i dont think it hurts the business. investors are going to care more about the balance sheet and i think most would appreciate him being a bull in the negotiation room.
2. I dont think a company can discuss particulars with an auditing firm before they are hired, so there is no way that Martin could have known this would happen. This is why you always see the following verbiage when a new auditor is hired. " On December 30, 2013, upon approval of the Board of Directors, the Company engaged Malone Bailey, LLP as its principal accountant to audit the Company's financial statements as successor to Sadler Gibb. During the Company's two most recent fiscal years or subsequent interim period, the Company has not consulted with the entity of Malone Bailey, LLP regarding the application of accounting principles to a specific transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's financial statements, nor did the entity of Malone Bailey provide advice to the Company, either written or oral, that was an important factor considered by the Company in reaching a decision as to the accounting, auditing or financial reporting issue.
Further, during the Company's two most recent fiscal years or subsequent interim period, the Company has not consulted the entity of Malone Bailey on any matter that was the subject of a disagreement or a reportable event."
Martin is building a great team and has divided the company into 3 divisions with Dan and Julie running the subsequent divisions so he is currently delegating responsibility as he sees the need.
EWSI is a public company and every action is under the microscope. There will definitely be more "black eyes" along the way but the risk substantially outweighs the reward here.
As far as Martins track record, this is what I care about.
Martin is building a great team and has divided the company into 3 divisions with Dan and Julie running the subsequent divisions so he is currently delegating responsibility as he sees the need.
EWSI is a public company and every action is under the microscope. There will definitely be more "black eyes" along the way but the risk substantially outweighs the reward here.
As far as Martins track record, this is what I care about.
Martin is a senior executive with extensive leadership and broad international experience with public and private growth companies and as an M&A advisor. Of his start-ups, three went public via IPO’s (2 NYSE, 1 NASDAQ), and he completed over 100 mergers/acquisitions – most of which were acquired by public companies. A business builder experienced with most aspects of company operations, including logistics, purchasing, product management, marketing, business development and finance, he is also an experienced negotiator.
Martin is also CEO and majority shareholder of E-Waste Systems, Inc. (OTCQB: EWSI) and previously founder and CEO of GEARRS, Global Electronics Recovery, and Encompass all of which were in the e-Waste and e-Reverse logistics industry. EWSI is in the electronics reverse logistics and e-waste recycling field and it targeted to professionalize the fragmented industry. He is also non-executive director of CoroWare, a publicly traded robotics and software company (OTCQB: COWI), and is on the board of the TransAtlantic Council of the Boy Scouts of America.
At Encompass he negotiated the acquisition of nearly $100 M worth of complementary companies in the e -reverse logistics field,including CyberTest, Pacific Magtron and Vance Baldwin Electronics. With his M&A practice he drove the European growth ofclients, including$8B Corporate Express, by ,sourcing and executing over $1B in acquisition transactions over 5 years. He founded Business Superstores, an office products company in London and merged it with what became the largest office products group in Europe, now Staples.He was a founding management team member of computer & networking firm Businessland, which grew to $1.5B and a NYSE listing in record time. Earlier, he helped build one of the world's premier retailers, the Gap Stores, from a few stores to a $3B NYSE company. He launched his career in the high-tech wastewater industry with Aqueonics, in Silicon Valley. Previously listed in reference works such as Barons 500, and Who’s Who of the World, Martin has also been a speaker at industry conferences, and a guest columnist for trade publications.
Martin is also CEO and majority shareholder of E-Waste Systems, Inc. (OTCQB: EWSI) and previously founder and CEO of GEARRS, Global Electronics Recovery, and Encompass all of which were in the e-Waste and e-Reverse logistics industry. EWSI is in the electronics reverse logistics and e-waste recycling field and it targeted to professionalize the fragmented industry. He is also non-executive director of CoroWare, a publicly traded robotics and software company (OTCQB: COWI), and is on the board of the TransAtlantic Council of the Boy Scouts of America.
At Encompass he negotiated the acquisition of nearly $100 M worth of complementary companies in the e -reverse logistics field,including CyberTest, Pacific Magtron and Vance Baldwin Electronics. With his M&A practice he drove the European growth ofclients, including$8B Corporate Express, by ,sourcing and executing over $1B in acquisition transactions over 5 years. He founded Business Superstores, an office products company in London and merged it with what became the largest office products group in Europe, now Staples.He was a founding management team member of computer & networking firm Businessland, which grew to $1.5B and a NYSE listing in record time. Earlier, he helped build one of the world's premier retailers, the Gap Stores, from a few stores to a $3B NYSE company. He launched his career in the high-tech wastewater industry with Aqueonics, in Silicon Valley. Previously listed in reference works such as Barons 500, and Who’s Who of the World, Martin has also been a speaker at industry conferences, and a guest columnist for trade publications.
