somewhere in guernsey

Somewhere in Guernsey

Somewhere in Guernsey 500,000 shares of Akers stock reside in the account of an accredited investor named Chubeworx that bought $1.7 million of Akers shares in 2013 and distributed its products.

In the journey a dispute arose about who did what to whom and a settlement was reached in 2016 in which Chuberworx received a claim on everything Akers had or did not have. In early August 2020 the old settlement was replaced with a new one that gave Chube $300,000 in cash and 500,000 shares in Akers that according to Akers was worth $2.5 million on the date of the settlement. The shares had no value to Chube until Akers requested permission from the SEC for Chube to sell the shares and then only at a rate of 10% of the daily trading volume in Akers. 

This last part, the restriction on the daily sales, known as a leak out agreement, was as unusual as it was complicated. The settlement was entered because there was no continuing relationship between the companies and presumably Chube was less than optimistic about Aker's ability to manage anything much less a business model that traversed medical devices to cannabis to covid 19 to now Alzheimer's in the span of three board meetings.

But here was Chube willing to accept $2.5 million of a $2.8 million settlement to end a seven-year dispute in paper rather than cash and accept the risk that the paper may well decline in value while permission from the SEC was requested and even after the permission was granted the shares would trickle into the hands of others willing to believe the legerdemain of Akers management. 

 
In the September 10 q Akers recorded a settlement charge of $2.5 million for the Chube shares at a market value of roughly $5.00 a share with no formula as to how that number was calculated and no indication how Chube would agree to take almost all of the settlement amount in paper and not cash. Akers filed a request with the SEC for Chube to be able to sell the shares on 18 August, the SEC gave effect to the request on 8 September, by which time Akers stock traded to $2.00 or a $1.5 million loss for Chube from the settlement price. 

Presumably Chube has a Board of Directors or at least someone minding the mailbox in Guernsey that might question the loss of at least half the settlement value in one month with mouth ajar and pockets empty. There would also be the small matter of Chube filing with the SEC to announce itself as an Akers shareholder of more than slight significance though with the amount of specie being printed by Akers, at least 8 million shares in nine months, it might be difficult to judge.

It is of no small mathematical interest that in 2016 when Akers balance sheet had little cash Chube settled for a future claim. In 2020, now that Akers had the cash and a fair amount of it after three public offerings and two exercises of warrants raised $18 million to pursue a Covid 19 vaccine that Akers claimed to be unable to afford, Chube settled for $300,000 plus $2.5 million in Akers shares that could not be sold immediately, at a trickle, with an appointment.