Ouch! That's gotta hurt!

RNS Number : 8245U
xG Technology Inc.
22 October 2010

Additional shareholder loan facility clarification

Further to its announcement on October 8, 2010...The Company would like to clarify that..., Ceinwen Lloyd did not participate in discussions concerning the transaction in its final form and did not participate in the Directors' approval. The Company has since been informed that she would not have approved the transaction.

Poor old Johan. One minute he's playing mind games with Rick, vying for Alpha status. The next minute Rick's sidestepped him all together and dealt the deal that essentially separates Johan from all that lovely money he's put into xG Rick's pockets.

As we know, Rick and Johan's relationship was always 'challenging' - due to them both being arseholes. Richard Kromka explains in the court documents...

“Dealing with Treco’s and xG’s management presented an even more challenging scenario. Neither would communicate with the other, so Kromka many times had to serve as the go-between, which placed him in untenable situations.... Bohman and Lloyd avoided speaking directly to Mooers and told Kromka that the reason for this was to increase Mooers’ “insecurity” in their relationship and that they will only talk to Mooers when 'he ran out of cash' and they constantly discussed with Kromka the idea of suing Mooers and taking over xG”. Then when critical descisions had to be made they would “be out of communication with Kromka” entirely, leaving him hanging.

I presume this is what happened here: There was a meeting but as per normal for xG the new clarification is fairly ambiguous in it's language. It says that the new loan was only approved by the 'majority' of board members. Hmm.

This could mean that only two of the remaining three directors approved it. I.e. it was a 1/2 split, which is now a 2/2 split. That could be interesting legally. On the other hand of course it could mean a 1/3 split, we may never know.

What is certain however is that Johan, as we assumed, wasn't happy. (If you are reading this - you can't say I didn't warn you....) And that this announcement is an on-record strengthening of their legal position, in preparation for the shit hitting the fan, when Rick activates his 'failure to pay himself' plan.

Beautifully done Mr Mooers

I can't help but to admire Rick Mooers latest efforts. I was wondering just how they were going to carry on - we've had the iDigi scam, the xG scam is almost past tense, what's next?  Switching the assets to another company is their modus operandi, and bingo, here we have it!  Among the terms of the latest desperate 'Loan' (no laughing at the back..) was the following:

Collateral:The additional loan shall be secured against all assets of the Company

In other words, they lend themselves money - which awards themselves all assets - if they don't pay themselves. Genius. They are now in a win-win: only two things can happen:

a) Pork gets airborne and the Army do their old buddy a favour. (Despite the fact that EVERY serious radio company has developed, or is developing, a cognitive radio. In fact Joe Bobier's favourite radio engineer Claude Shannon partly came up with the idea...)

b) The company folds and Rick walks away with everything. (Which as we know is actually nothing...) But he can pretend, as he's always pretended, that the patents are worth 'Billions' and a new scam can start. I almost feel sorry for Joe: As the companies assets are Joe's dubious patents, Joe won't own them any more. Johan Bohman - stuffed. Investors - stuffed.

As to the loan itself, something does not add up: MB have paid themselves $70k (now $80k) or so a month for 8 years = $6.7M. Now they intend to lend themselves $5M. That's a huge chunk of what they've legally scammed from investors. Does not compute. The possibilities I see are:

1) They won't be lending anything near $5M - just a few dollars in dribs and drabs as bills become overdue, until it's obvious which of the above two options will come about.
2) They will be lending the $5M - which implies they've been able to scam much more than the $6.7M that's been legally declared. 

P.S. It seems like payroll costs are biting. Has anyone noticed that Jonas Krepp, Director of Investor Relations has been given the heave-ho and replaced with James Woodyatt?


P.P.S. You have to wonder about a Scam Company whose new P.R. girl is called Bennie Sham