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Re: Rufus38 post# 126980

Thursday, 10/19/2017 7:49:39 PM

Thursday, October 19, 2017 7:49:39 PM

Post# of 183214
They will likely read a safe harbor statement at the beginning of the call. However, the SEC does not recognize or allow penny stocks to have the benefit of a “safe harbor” even though most include it in press releases etc.

They should not really discuss anything that has not already been disclosed. If they do, it needs to be followed up by a PR and 8K pretty quickly.

The SEC is concerned with “accuracy” and “adequacy” in terms of public disclosures or statements. So while accuracy is pretty straight forward, adequacy is where penny stocks generally run into issues. You can’t tease stuff. If you can’t fully disclose then it’s best not to disclose anything.

How the stock reacts to this is entirely up to the market. But they are held to the same standard as they are for their filings. They must be accurate and adequate.