Cardo, as you many of you know, is the company that acquired the troubled balance sheet, and me-too products that our friends the Three Stooges at Vertebron had developed. Word on the Street was that Vertebron was offered an estimated $10 million, and some sources claim that there also had been an offer for $30 million. If true, why were those offers rejected? Simple: the Three Stooges as they have become affectionately known, graduated from the PT Barnum school of business. Only to find out that the joke was on them The bankruptcy courts auctioned off the company and its assets to Cardo. Old news is old news. So why is TSB dedicated time to rehashing history? Because there are lessons to be learned.
The first mistake that they made was not bringing in an experienced industry veteran, qualified to assess the existing portfolio, the value of the intellectual property, the business distribution model, the surgeons that were committed to this product (LOL) and address the issues that this company had, and would face if they were to successfully integrate a spine portfolio (not even mediocre) into a reconstruction company. Remember, you can't make Beef Wellington out of Bull Shit.
If there was any truth to the rumor that commissions were owed to distributors that were contracted to Vertebron prior to the sale, they should have been paid, even if Cardo found that a bitter pill to swallow. Why? It's bad enough when Moe, Larry and Curley were willing to perform their infamous now you see it, now you don't, it's a double whammy when the new owners reject their responsibility in acquiring the company. That's right fellow bloggers, when Cardo acquired Vertebron, they just didn't buy the portfolio, they bought a company.
Maybe there are lessons to be learned, and hopefully, some people will look in the mirror and understand that being a surgeon doesn't qualify you to run a company. That being an engineer with a background in recon doesn't make you a great spine engineer. There is a difference between driving a train and being the conductor. Why does this continue to happen in our industry? Fool's Gold? Ego? Stupidity? Whenever you use someone else's money, you lack discipline and accountability. How many of these fly by night companies have come and gone? How many companies exist where the CEO has asked its management team, or employees, to forego their salaries until they raise more capital? How many spend money without being held accountable by its investors? How ridiculous do the banksters and private investors feel that they continue to piss money into the wind? The future is in front of you, open your eyes. Attempting to execute a reverse merger vis-a-vis a PIPE in this economy was and is insanity. Not when you have absolutely nothing to offer.
So in closing, our heartfelt condolences go out to those fifteen people that lost their jobs this week. It sucks to be out of work in this economy, hopefully, someone will see your value and offer you a job. As for Abbott and Costello, the show goes on.