- Recent Legal Activities & Potential Transfer of Control
- A New Vision for the Company
Thursday, May 12, 2016
AN OPEN LETTER TO THE SHAREHOLDERS OF TRANSGLOBAL ASSETS INC
LAS VEGAS, NEVADA, May 10, 2016
To My Fellow Shareholders:
By now, many of you are aware that I filed suit against TransGlobal Assets, Inc (OTC: TMSH) in July, 2013. This litigation was initiated as a result of Company Management’s failure to uphold legal and operational responsibilities, including but not limited to its contractual obligations. The lawsuit was a last resort following my repeated attempts to seek their performance in satisfying the conditions of promissory notes between the Company and myself, which were first breached in [December 2010].
This case was adjudicated in the District Court of Las Vegas, Nevada in July, 2015. Neither Mr. Strickler nor Mr. Johnson, the two officers and directors of the Company, chose to appear and testify at their own trial. At the conclusion of the trial, I was awarded a judgment against the Company for their breach of contract. It is my opinion that, in an effort to avoid satisfying the judgment against the Company, the sole revenue producing asset of the Company, SLXCO, was divested without official public notification thus depriving all TransGlobal Asset Shareholders of their proxy voting rights on this matter and any foreknowledge of the devaluation of their shares, as well as removing the Company's financial wherewithal to satisfy the judgment against it. The Company has since filed an appeal with the Nevada Supreme Court, attempting to overturn the judgment.
As with most cases filed with the Nevada Supreme Court, a mandatory mediation process is instigated to provide the parties an opportunity to settle the case. The mediation process is governed by the rules of the Nevada Supreme Court and is presided over by a Settlement Judge. Such mediation was conducted in February, 2016. After many hours of negotiation, a settlement was reached, freely agreed to and signed by all parties. Amongst other stipulations, it was agreed that the Company would, through its director, Mr. Johnson, appoint me, Fredrick Conte, as the new and sole director of the Company. The Settlement Judge reported to the Supreme Court that a settlement had been reached between the parties. A few days following the settlement conference, while awaiting the logistics of the transfer of control of the Company, the Company notified the Settlement Judge that it had “changed its mind” and had chosen to continue with its appeal, rather than abide by the settlement which it agreed to just days before. No reason was given for this action. Through a motion filed with the Court, I have asked the Supreme Court to enforce its own mediation rules by ratifying the settlement already reached with the Company.
This has been a long, arduous and expensive process. In the end, if, as expected, the settlement agreement is upheld and ratified, and a transfer of control takes place, then the new management team of TransGlobal Assets will be shifting its full attention to aligning with solid, well established companies that when moved under its umbrella can and will provide multi-million dollar revenue streams and thereby bring significant value that is long overdue for the Shareholders of TransGlobal Assets, Inc. Serious discussions have been underway for some time with potential quality partners that are seeking a publicly traded vehicle to enhance their operations. To provide a glimpse of the future direction of the Company, at this juncture I can share some of the industries in which prospective companies operate: Hospitality; Medical/Cannabis; Ancestral Research; Product Delivery/Distribution, amongst others. Of course, there are no guarantees that we will be successful in this effort, but we are very optimistic and we look forward to several new partners joining our Team in the near future.
I also wish to make known to my fellow Shareholders that if, as expected, the transfer of control of the Company is finalized through the Ratification of the Settlement Agreement, I will keep Shareholders informed in accordance with the letter and intent of the laws by which public companies must abide. Now, more than ever, operational transparency must be a business practice and not just an empty platitude used to largely to embellish news releases and marketing materials. Upon receiving control of the Company, my first order of business will be to conduct a thorough accounting of all shares. Any change in the share structure, if necessary will only be due to the enhancement of the Company through bona fide Acquisitions, Strategic Partnerships and /or Mergers. and for the benefit of all Shareholders, not just Company Management as is the case in many companies today.
It is my hope, that by sharing with you some of my perspectives of past circumstances and my hopes for the future of OUR Company, that you will gain insight and perhaps even optimism into the new direction that TransGlobal Assets is likely headed. Together we can forge a new Company for all to be proud of and share in its growth. Please contact me with any sound opportunities that you feel will enhance the value of TransGlobal Assets, Inc., for all Shareholders.
For more information on my professional background and credentials, you are welcome to review them on LinkedIn: https://www.linkedin.com/in/frederickconte.
Most Sincerely Yours,