06-14-2013, 02:36 AM
2337 Vangorilla March 21 2013
From their 10K regarding the suit:
The Company has filed a counterclaim for damages arising from a proposed private placement in 2000 which did not close. The Company alleges that the beneficial owner of Noramco was a partner in the firm that was leading the proposed financing.
I would imagine there would be a paper trail, dont you?
The Company has filed a counterclaim for damages arising from a proposed private placement in 2000 which did not close. The Company alleges that the beneficial owner of Noramco was a partner in the firm that was leading the proposed financing.
I would imagine there would be a paper trail, dont you?
2340 Vangorilla
The Destiny versus Noramco story (from Stock Watch). This will get everyone caught up on the history.
I suggest bookmarking it...I highlighted the good parts.
http://www.stockwatch.com/News/Item.aspx?bid=Z-C:DSY-1911607&symbol=DSY&;..
Destiny blames Noramco for lagging price
2011-12-15 13:13 ET - Street Wire
by Mike Caswell
Destiny Media Technologies Inc., in response to a lawsuit it faces from Richard Angus Bruce McDonald's Noramco Capital Corp., blames Noramco for an 11-year campaign to aggressively manipulate its stock downward. According to Destiny, Mr. McDonald took a naked short position in 2000 as he was negotiating a private placement with Destiny, and in the ensuing 11 years has continued to exert downward pressure on the stock. The company says his actions have prevented it from raising money and developing its business.
The accusations come after Noramco sued Destiny in the Supreme Court of British Columbia on Nov. 8, 2011, over an 11-year-old private placement. In the brief suit, Mr. McDonald had asked for the return of $100,000 (U.S.) that he provided the company in August, 2000. He said he had planned to subscribe to a private placement, but the company failed to deliver a share certificate. He asked for the return of the money, with interest and court costs.
Destiny's answer
Destiny's response to the claim, filed on Monday, Dec. 12, contends that Noramco used the private placement agreement to obtain confidential information that it would not have otherwise been able to receive. It then began an "aggressive and secret campaign" to push down the stock through naked shorting and other unspecified methods. It continued to short the company as a means of keeping the price down so it could defer or avoid having to cover its naked short positions at a loss, the response states.
The private placement, as described in the response, was first proposed in June, 2000. Destiny's officers had recently met a man called Paul Louie who said he represented Mr. McDonald and others, including now-defunct brokerage Thomson Kernaghan & Co. Ltd. and its chairman, Mark Valentine. (Thomson Kernaghan, which was known for death spiral financings under Mr. Valentine, collapsed in scandal in 2002. Mr. Valentine later pleaded guilty to criminal charges in the United States for market manipulation and received four years of probation.)
Mr. Louie told Destiny that he was interested in arranging a $35.6-million financing for the company through Noramco and Thomson Kernaghan, the response states. The amount was substantial to Destiny, as it had never had a financing larger than $1-million at the time. The company says that it agreed to some initial terms, in which it provided confidential information to Noramco and did not pursue any other sources of financing. In August, 2000, it received the now-disputed $100,000 (U.S.) from Noramco as part of that arrangement.
Although Destiny understood that the $100,000 (U.S.) was provided for a share subscription, it says that it did not execute any share purchase agreement. This was partly because it could not get Noramco to agree to a price. The parties discussed $1.50 and 75 cents, but ultimately did not agree on anything. Destiny says that Noramco intentionally avoided setting a price so it could depress the stock sufficiently to pressure the company into accepting a lower subscription price.
Eventually, in January, 2001, Destiny received a letter from Noramco's lawyer which demanded the return of the $100,000 (U.S.). Destiny, in response, offered either shares or the $100,000 (U.S.). The company also agreed to a meeting with Mr. Louie to discuss the investment, but the meeting never happened. According to the response, that was the last time the parties communicated.
After that, Noramco and Mr. McDonald ran an aggressive, secret short-selling campaign against the company, the response claims. While Destiny provides no details of the 11-year campaign (it says that information is well known to Noramco and Mr. McDonald) it claims that the campaign continues "to this day." The result has been that Mr. McDonald has generated substantial profits while Destiny has been forced to raise money at artificially depressed prices.
As the company tells it, the suit only came about after Mr. McDonald somehow learned that the company had issued 133,333 shares in Noramco's name. Destiny says it did issue the stock, but only as a way to account for the $100,000 (U.S.) that it received from Noramco. It did not send Mr. McDonald the certificate.
The company says it has suffered substantial harm as a result of Noramco's conduct, and it claims a set off in relation to such harm in defence to the suit. The company asks that the suit be dismissed.
Vancouver lawyer David Brown of Stikeman Elliott LLP filed the answer on the company's behalf.
Destiny, which traded between 68 cents and $1.65 on the OTC Bulletin Board in August, 2000, closed at 40 cents Wednesday.
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A couple things I wonder...why did Noramco never accept the $100k or shares that were being offered back in 2001?
Why after 10 years is Noramco trying to recover this $100k?..and announce their suit on the same day that DSNY announces revolutionary technology?
Did Noramco just assume DSNY would go out of business and figured they would never have to cover?
If Noramco did create a naked short position, and still maintains it, SOMEBODY is owed DSNY shares.
I suggest bookmarking it...I highlighted the good parts.
http://www.stockwatch.com/News/Item.aspx?bid=Z-C:DSY-1911607&symbol=DSY&;..
Destiny blames Noramco for lagging price
2011-12-15 13:13 ET - Street Wire
by Mike Caswell
Destiny Media Technologies Inc., in response to a lawsuit it faces from Richard Angus Bruce McDonald's Noramco Capital Corp., blames Noramco for an 11-year campaign to aggressively manipulate its stock downward. According to Destiny, Mr. McDonald took a naked short position in 2000 as he was negotiating a private placement with Destiny, and in the ensuing 11 years has continued to exert downward pressure on the stock. The company says his actions have prevented it from raising money and developing its business.
The accusations come after Noramco sued Destiny in the Supreme Court of British Columbia on Nov. 8, 2011, over an 11-year-old private placement. In the brief suit, Mr. McDonald had asked for the return of $100,000 (U.S.) that he provided the company in August, 2000. He said he had planned to subscribe to a private placement, but the company failed to deliver a share certificate. He asked for the return of the money, with interest and court costs.
Destiny's answer
Destiny's response to the claim, filed on Monday, Dec. 12, contends that Noramco used the private placement agreement to obtain confidential information that it would not have otherwise been able to receive. It then began an "aggressive and secret campaign" to push down the stock through naked shorting and other unspecified methods. It continued to short the company as a means of keeping the price down so it could defer or avoid having to cover its naked short positions at a loss, the response states.
The private placement, as described in the response, was first proposed in June, 2000. Destiny's officers had recently met a man called Paul Louie who said he represented Mr. McDonald and others, including now-defunct brokerage Thomson Kernaghan & Co. Ltd. and its chairman, Mark Valentine. (Thomson Kernaghan, which was known for death spiral financings under Mr. Valentine, collapsed in scandal in 2002. Mr. Valentine later pleaded guilty to criminal charges in the United States for market manipulation and received four years of probation.)
Mr. Louie told Destiny that he was interested in arranging a $35.6-million financing for the company through Noramco and Thomson Kernaghan, the response states. The amount was substantial to Destiny, as it had never had a financing larger than $1-million at the time. The company says that it agreed to some initial terms, in which it provided confidential information to Noramco and did not pursue any other sources of financing. In August, 2000, it received the now-disputed $100,000 (U.S.) from Noramco as part of that arrangement.
Although Destiny understood that the $100,000 (U.S.) was provided for a share subscription, it says that it did not execute any share purchase agreement. This was partly because it could not get Noramco to agree to a price. The parties discussed $1.50 and 75 cents, but ultimately did not agree on anything. Destiny says that Noramco intentionally avoided setting a price so it could depress the stock sufficiently to pressure the company into accepting a lower subscription price.
Eventually, in January, 2001, Destiny received a letter from Noramco's lawyer which demanded the return of the $100,000 (U.S.). Destiny, in response, offered either shares or the $100,000 (U.S.). The company also agreed to a meeting with Mr. Louie to discuss the investment, but the meeting never happened. According to the response, that was the last time the parties communicated.
After that, Noramco and Mr. McDonald ran an aggressive, secret short-selling campaign against the company, the response claims. While Destiny provides no details of the 11-year campaign (it says that information is well known to Noramco and Mr. McDonald) it claims that the campaign continues "to this day." The result has been that Mr. McDonald has generated substantial profits while Destiny has been forced to raise money at artificially depressed prices.
As the company tells it, the suit only came about after Mr. McDonald somehow learned that the company had issued 133,333 shares in Noramco's name. Destiny says it did issue the stock, but only as a way to account for the $100,000 (U.S.) that it received from Noramco. It did not send Mr. McDonald the certificate.
The company says it has suffered substantial harm as a result of Noramco's conduct, and it claims a set off in relation to such harm in defence to the suit. The company asks that the suit be dismissed.
Vancouver lawyer David Brown of Stikeman Elliott LLP filed the answer on the company's behalf.
Destiny, which traded between 68 cents and $1.65 on the OTC Bulletin Board in August, 2000, closed at 40 cents Wednesday.
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A couple things I wonder...why did Noramco never accept the $100k or shares that were being offered back in 2001?
Why after 10 years is Noramco trying to recover this $100k?..and announce their suit on the same day that DSNY announces revolutionary technology?
Did Noramco just assume DSNY would go out of business and figured they would never have to cover?
If Noramco did create a naked short position, and still maintains it, SOMEBODY is owed DSNY shares.