Hi guys. I cant believe I have not found this board until recently and thanks for providing the very relevant and refreshing forum.
Ive got a DD question I dont know the definitive answer to. Ive been wondering about the legality, or not, of a pinksheet company "hiding" so to speak, millions of shares from the dilution-purchasing public that were issued to a mystery party(s) for a mystery sum.
This occured in Q1 2012 and was only discovered via crunching some numbers and finding the numbers dont match in the Q2 filing.
Of course a massive Ihub campaign fired up in Q2 and unreal volume and false pps appreciation occured.
My Q simplified is can a pinksheet company choose not to disclose a particular transaction(s) and really get away with it? This was the explanation by the CEO to several supposed investors when they contacted her regarding the transaction, she supposedly said it was not required for her to report this private transaction and it was to an investor at "premium". And yes, it was enough to qualify at the then 10% threshold for reporting beneficial changes of ownership, except the party for sure seems dumped them in Q2 for massive gains into massive volume.
Now while this is completely not transparent nor ethical in any fashion Im wondering is this somehow legal even in the wild wild pinkie west to this day?
Can you "hide" diluted shares even in the filings? Of course the company has a gagged TA lol.
Thanks for any input and thanks for the board.