Pompano Beach, May 17, 2018 (GLOBE NEWSWIRE) -- In a recent SEC filing, the bidder of the tender offer revealed some concerning findings that are of great consequence to shareholders.
It reveals that Myron Lewis, the chairman of the Board, either issued to himself or used another mechanism to obtain 2.25 million DSKX shares while the company had rapidly declined in value and in fact does not even maintain a functioning website. This appears to support the findings of self-dealing and other concerns recently shared by the founder in a letter to shareholders. At the time that Myron Lewis obtained these shares, it would have represented nearly 10% of the company while the company has delivered no value to shareholders. In other words, Mr. Lewis feels that he should have nearly as many shares as the founder who built the company and ran it for 10 years, grew the company to almost $15m in revenue and listed it on the Nasdaq. On the other hand, some other shareholders paid millions of dollars for a smaller stake than what Mr. Lewis has received and have expressed outrage since this information went public. Since the time Mr. Lewis has been Chairman, revenue of the company’s operation has declined to nearly zero, the company does not even trade on the pink sheets and is on the verge of bankruptcy.
However, even if the shares issued to Mr. Lewis had in fact been issued for achievements and contributions that he made to the company (at this time there is no evidence of any) this issuance is unlawful and does not comply with the applicable SEC rules. Mr. Lewis did not file a Form 3 disclosing his ownership, did not indicate his ownership in Form 10K, Section 16, or anywhere at all in what appears to be an attempt to conceal his ownership.
Another matter of concern is that while Mr. Lewis claims to be independent, public documents clearly reveal that he has a close relationship with Evercare since Mr. Lewis’s wife Deanne Rosenberg includes a message to the principle of Evercare in her management book “From Rage to Resolution: Conquering Conflict”.
This is a matter of great important to DS Healthcare shareholders as it would result in significant dilution and could potentially result in all remaining shareholders receiving a smaller disbursement from any coming legal settlement that is now included in the latest tender offer. The shareholders action group encourages shareholders to contact the group representative at 347-276-2598 to take steps to claw back the shares that were improperly issued to Mr. Lewis. It is likely that because the issuance did not comply with any applicable laws, the shares will not be considered in any vote or other shareholder action.