It looks like the Stalking Horse sale has just got
Post# of 36563
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Posted On: 11/11/2022 4:02:01 PM
It looks like the Stalking Horse sale has just got more complicated and legally time consuming thanks to mhafner’s update posting https://investorshangout.com/post/view?id=6495734
The four “walk-away amigos” Terry Thompson, Richard Purcell, Dr. Jason Terrell and Anthony Crisci are objecting so they can make sure that they can get any and all the money that the Generex bankruptcy might generate.
Since Olaregen is a privately held company, the outcome really has no effect on us. Any money generated by its sale will just go to the creditors. However, for your FYI, the objection file listed:
“The Debtor Does Not Own 100% in Olaregen
Generex: 2,291,234 shares
Terry Thompson (President): 2,115,052 shares
Richard Purcell (Chief R&D Officer): 2,115,052 shares
Anthony Crisci (Chief Legal Officer): 2,115,052 shares
Jason Terrell, MD (Chief Medical Officer): 600,000 shares”
Total authorized shares: 10,000,000
If this is legally true, then the court will have to have Olaregen appraised in order to have Generex sell its shares at a true value if the stalking horse still wants to buy the stock and only own 22.9% of the company.
As for NuGenerex
"The Debtor Does Not Own 64,153,151 Shares of NGIO Common Stock
As a result of the Compensation Settlement Agreements, out of the 64,153,151 shares of NGIO common stock that were owned by the Debtor, the following shares of NGIO common stock were granted to the Objecting Parties:
Terry Thompson: 10,862,504 shares
Richard Purcell: 5,604,259 shares
Anthony Crisci: 7,869,104 shares
Jason Terrell, MD: 3,351,791 shares"
Total: 27,687,658
GNBT: 36,465,493
In the Exhibit "C" under "Bankruptcy or Insolvency Proceedings"
"... then the Employee shall be first on the creditors list (or as the law permits) to get paid the remaining Compensation Amount."
But the question is; How much compensation is actually still owed (if any) to the “four amigos”?
On Page 10 “Pay Out Schedule:”
"b. Vesting Date: Five months after NGIO is listed on the NASDAQ or equivalent exchange; 1/3 of the shares will vest with the next 1/3 of shares vesting 6 months from that date and the final 1/3 of shares vesting 6 months later"
https://corporatefinanceinstitute.com/resourc...s/vesting/
NGIO has never been officially (legally?) listed. NUGX is a rogue ticker symbol. So, do the “four amigos” still/ever had ownership of NuGenerex stock? Will the court see NUGX trading as the start for the Vesting Date? Since all four walked away from Generex/NuGenerex, does that mean they automatically forfeit any due compensation/stock options or ownership?
If there are no buyers for Generex assets, then the creditors that forced the company into a Chapter 7 liquidation get NOTHING! With a Chapter 11 reorganization they could have recouped something.
As for the Stalking Horse, they want NuGenerex and Olaregen free and clear of any and all of the dead weight baggage that Joe loaded in excess onto the companies. Right now, it looks like the barnacles are firmly attached to Generex/NuGenerex.
The four “walk-away amigos” Terry Thompson, Richard Purcell, Dr. Jason Terrell and Anthony Crisci are objecting so they can make sure that they can get any and all the money that the Generex bankruptcy might generate.
Since Olaregen is a privately held company, the outcome really has no effect on us. Any money generated by its sale will just go to the creditors. However, for your FYI, the objection file listed:
“The Debtor Does Not Own 100% in Olaregen
Generex: 2,291,234 shares
Terry Thompson (President): 2,115,052 shares
Richard Purcell (Chief R&D Officer): 2,115,052 shares
Anthony Crisci (Chief Legal Officer): 2,115,052 shares
Jason Terrell, MD (Chief Medical Officer): 600,000 shares”
Total authorized shares: 10,000,000
If this is legally true, then the court will have to have Olaregen appraised in order to have Generex sell its shares at a true value if the stalking horse still wants to buy the stock and only own 22.9% of the company.
As for NuGenerex
"The Debtor Does Not Own 64,153,151 Shares of NGIO Common Stock
As a result of the Compensation Settlement Agreements, out of the 64,153,151 shares of NGIO common stock that were owned by the Debtor, the following shares of NGIO common stock were granted to the Objecting Parties:
Terry Thompson: 10,862,504 shares
Richard Purcell: 5,604,259 shares
Anthony Crisci: 7,869,104 shares
Jason Terrell, MD: 3,351,791 shares"
Total: 27,687,658
GNBT: 36,465,493
In the Exhibit "C" under "Bankruptcy or Insolvency Proceedings"
"... then the Employee shall be first on the creditors list (or as the law permits) to get paid the remaining Compensation Amount."
But the question is; How much compensation is actually still owed (if any) to the “four amigos”?
On Page 10 “Pay Out Schedule:”
"b. Vesting Date: Five months after NGIO is listed on the NASDAQ or equivalent exchange; 1/3 of the shares will vest with the next 1/3 of shares vesting 6 months from that date and the final 1/3 of shares vesting 6 months later"
https://corporatefinanceinstitute.com/resourc...s/vesting/
NGIO has never been officially (legally?) listed. NUGX is a rogue ticker symbol. So, do the “four amigos” still/ever had ownership of NuGenerex stock? Will the court see NUGX trading as the start for the Vesting Date? Since all four walked away from Generex/NuGenerex, does that mean they automatically forfeit any due compensation/stock options or ownership?
If there are no buyers for Generex assets, then the creditors that forced the company into a Chapter 7 liquidation get NOTHING! With a Chapter 11 reorganization they could have recouped something.
As for the Stalking Horse, they want NuGenerex and Olaregen free and clear of any and all of the dead weight baggage that Joe loaded in excess onto the companies. Right now, it looks like the barnacles are firmly attached to Generex/NuGenerex.
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