Tweet
I'm interested in a company called Lifelogger (LOGG). They were supposed to be developing one of these portable cameras (and related software) that you wear and record whatever happens to you. But they seem to have failed. They do have some software but have zero product revenue tho they keep saying they have plans. Over the past three years the common stock has gone from $.90 to $.009 per share. They have now created a class of preferred shares consisting of 1000 shares, each of which has the voting right of 50,000 common shares. The chairman of the board, who is the only member of the board, has purchased all 1000 preferred shares at 10 cents a share (total $100). As there are about 50 million shares outstanding he now (with a few shares of common he undoubtedly owns) has voting control of the company.
So my question is why is he doing this. Why would he want control of a company which has only debts (and I guess some working software). The reason must also presumably be something that is legal, since he is not hiding this. If he has inside knowledge that they are about to start making money and figures to take the company private so he can cop all the revenues would he not be guilty of trading on inside information? Beats me.
Interested in any opinions you may have. It might be that he has good motives and has something up his sleeve that will help existing shareholders get some of their money back.
Here is a link to the SEC report of the creation of the preferred shares.
So my question is why is he doing this. Why would he want control of a company which has only debts (and I guess some working software). The reason must also presumably be something that is legal, since he is not hiding this. If he has inside knowledge that they are about to start making money and figures to take the company private so he can cop all the revenues would he not be guilty of trading on inside information? Beats me.
Interested in any opinions you may have. It might be that he has good motives and has something up his sleeve that will help existing shareholders get some of their money back.
Here is a link to the SEC report of the creation of the preferred shares.
Comment