- THE FALSE STORY -
"Stephen went on to form the ground-breaking streaming video company Vidnet, which went on to become one of the top entertainment websites and had one of the world’s largest collection of music videos online. The company streamed over 5 million monthly videos and provided content to such companies as British Telecom, Microsoft, Disney, Lycos, Alta Vista and many more, along with industry alliances such as entertainment giants, Sony Music, Warner Bros and EMI Capitol. Stephen’s vast experience enabled him to build the company from five to over 100 employees and he took the company public on the NASDAQ, reaching a market cap of over $500M."
- Stephen Brown's Bio Since 2012
VIDNET (OTC: EBLD)
- THE REAL STORY -
Vidnet Went Public on NASDAQ
EBLD was trading on the OTC at the time it was acquired and Vidnet was reverse merged into it, till the time it was revoked by the SEC. It at no time while Stephen Brown was CEO traded on the NASDAQ stock exchange.
Raised $100M on Wallstreet
Vidnet never reports even $20M, let alone $100M, in audited or unaudited statements before being dismantled. Most capital raises were toxic convertible notes that were dumped into the market, crushing shareholders.
From 3 Employees to 150 Employees
Vidnet reports at a peak to have 24 employees per SEC filings early 2000. By late 2000 the company staff was reduced to one full time employee after dismantling the company.
Sold to Clear Channel '03/'04
Stephen Brown was out of Vidnet in mid-2000, after blowing through $10M in funding, failing to generate meaningful revenue, taking personal loans from the company, and was sued for breach of written and oral agreements, breach of fiduciary duty, conversion, interference with existing and prospective business relationships, breach of trust, implied indemnity and accounting. Vidnet's complaint sought a minimum of $585,000 for money owed by Mr. Brown to the Company and further damages for his tortuous activities.
Very Very Successful
Vidnet shareholders lost most their investment into EBLD stock from the hype of the reverse merger. Any investment into EBLD stock held long term resulted in a complete loss. By Oct 2000 the stock went from $8.00 to $.125 and was eventually revoked by the SEC leaving investors penny-less.
Stephen Brown Was Not Involved In Another Public Company Till Recently
Stephen Brown had already been moving "projects" into another OTC shell, WorldNet Resource Group OTC:WNRG, in early 2000 and was immediately appointed Chairman and CEO after Vidnet. He had also been CEO at 2 other (4 total) failed OTC companies OTC:MLGH and OTC:PMWI by 2006. He attempted to gain control of OTC:AUMN and OTC:NCRG to reverse merge other projects, but failed to complete these deals. Stephen Brown as been CEO of 8 OTC companies to date.