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Note P - Subsequent Events
6 Months Ended
Jun. 30, 2022
Notes to Financial Statements  
Subsequent Events [Text Block]

Note P - Subsequent Events

 

On July 5, 2022, VRMI merged with and into Suncrest Holdings, LLC (“Suncrest”), an entity managed by an entity majority owned and controlled by Michael Shustek, the Company’s former Chief Executive Officer. On July 11, 2022 Suncrest assigned and sold five of the six notes issued originally by VRMI to certain of the subsidiaries of the Company as described in Note I above (collectively, the “VRMI Notes”) to VRMII. As a result, the obligations of Company subsidiaries under the five VRMI Notes, including all repayment obligations, are now owed to VRMII. All of the loans evidenced by the VRMI Notes mature and are payable in full on August 25, 2022.

 

On July 18, 2022, affiliates of MacKenzie Capital Management, LP (the “Bidder”), launched an unsolicited “mini-tender” offer for up to 103,500 shares of the Company’s Common Stok, which represents approximately 1.33% of the outstanding shares of the Company’s Common Stock, and up to 1,070 shares of the Company’s Preferred Stock, which represents 2.51% of the outstanding shares of the Company’s Preferred Stock combined, each as of July 18, 2022.  On July 29, 2022, the Bidder announced the extension of the offering period for the “mini-tender” offer.  The Board does not endorse the Bidder’s unsolicited mini-tender offer and recommends that stockholders do not tender their shares to the Bidder.