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What the heck does that mean?
Strange indeed!
I gotta get some more popcorn.
Are you saying that no material event occurred on Monday with the announcement? In otherwords, the closing of the deal is still up in the air? It might, or might not happen on the 25th? That there was nothing binding agreed to or signed on Monday?
Because that is the ONLY WAY it was not a material event.
But then we have to ask, if it was not material, why PR it? Why not wait until the 25th????
He did an 8K for a 3 day trip to Butte, for "meetings"...but not for the substance of the PR Monday?????????
This red flag has a siren, strobe light, and fireworks attached to it.
Funny thing is, he seems to have no problem filing 8K's....but it appears only when it serves his purpose...and not the shareholder's
It's almost laughable now....if it wasn't so serious.
I am afraid a lot of people are going to find out the hard way.
I wasn't talking about the stock.
That is the post of a clear headed, unemotional investor.
But human nature is what it is. It is very hard to even ask oneself questions that are hard to answer without it upending your belief structure.
The reason suspended pinks get alot of MB attention is the same reason people gawk at a car accident. But in this case it is happening in slow motion and everyone was given 10 days warning it was coming.
But it doesn't mean the spectators want to be sitting in the car.
"I took a three day trip to Butte to talk to some folks" - gets an 8K
"I signed a deal to buy MSE" - doesn't get an 8K
Any plain reading of the PR issued by Fallacaro on Monday makes what he was announcing a material event to the stock GTGP if GTHI is owned in a meaningful way by GTGP. Just because the actual close is not until the 25th, does not mean that the announcement of the "deal", is and of itself, a material event, something was signed....UNLESS...the reality is that the ACTUAL ownership (or the upcoming deal closing on the 25th) is not material to GTGP.
It is clear that announcement of a deal like this should be expected to influence the price of the stock under normal circumstances, and thus the announcement itself is a material event.
He can't have it both ways. The 8K is the legal document that he is most exposed to. The PR exposes him as well, but he went to what appears to be great lengths to keep the "benefit" to GTGP hidden. THE FACT OF THE MATTER IS THAT IF GTGP HAD ZERO INTEREST IN GTHI, THAT PR WOULD STILL BE ACCURATE. It is not referred to in any way as a subsidiary, or in any directly as part of the "deal".
So there are only 2 choices
1) the annoucement of the deal is a material event to GTGP, and he has decided to not file an 8K....for any number of reasons, not the least of which is the % is lower than he is hoping people think it is.
2) it is not material to GTGP and he runs the risk of a major faux pas while his company is under investigation.
In my view #1 has less risk to him.
Also I find the evolution of the debate about what actually happened on Monday to be enlightening. Initially some where questioning if anything was signed or agreed to and therefore everything was left wide open until the 25th...and the general response was NO, THE DEAL IS DONE!!!!?....but then when suddenly this pesky little issue of an 8K gets brought up...now...it's NOTHING IMPORTANT HAPPENED ON MONDAY!!!
Can't have it both ways.
8K's are required for "material definitive agreements not made in the ordinary course of business".
This fits.
Unless it was not a definitive agreeement....then we are back to the question of what is really going to happen in the 25th?
I agree. I really can't see how there will not be one. But my guess is it will only regurgitate the PR. No new information. I believe there is some ownership of GTHI by GTGP for a host of reasons.
...and signing an agreement is as material as it gets (especially since it was PR'd) and it looks like he has done 8K's for all PR's recently...?
If there is none, only two explanations....either it was not a material event to GTGP and an 8K of the PR would be a misleading filing (cause it is a legal document)...or...he is just delinquent on yet another filing, but for a reason.
...either way, not good.
He has done an 8K for a 3 day trip to Butte.....jeeze!
Material event was signing the agreement. No way around it. Another material event will be the close on the 25th.
Well, I agree that it would have to be unlike any other.....
Does not support anything. That was not reinstatement off the greys.
Sorry, different issue. Do some DD on DTCC chills.
Exactly. Every "true long" on every suspended pink wants to believe that volume leaving means sellers drying up. That has never been the case. It is always the opposite. The best DD one can do is go look at an "active" suspended pink in the weeks and months it starts trading on the grey sheets and you will see only variations on the same pattern. Price stabilization, volume decreasing, then price drop to new level, some stabilization, volume drying up....wash, rinse, repeat.
Reinstatement off grey sheets did not happen. Removal of DTCC chill only. COMPLETELY separate issue.
If you trade pinks, you may want to become very familiar with what DTCC is and how it works.
Sorry...still grey. May want to read up on DTCC issues vs. SEC suspension.
Can you post this since October 1?
So what do you call October 1?
efrky - any response to your email?
Just curious...although I don't know how it would be verified...
So Liljeff, you have decided to hold everything in anticipation of recovery?
I recall this is a big deal for you.
You can't define it as a buy or a sell. You don't know how they came together. Given that the one large trade happened at the even price...it's a tie.
10 trades today for a total of a little over $6500 in trading volume....
....good numbers?
The only problem with that wisdom, is that it falls apart when applied to grey sheet stocks. You could make the same statement/observation about the hundreds of suspened pinks on the grey sheets in the last 5 years at any point in time, but not a single investor has been rewarded on any of them for taking that wisdom to heart.
Volume drying up on a grey sheet stock only means, and has only ever meant, that buyers have left.
There is not a single contradiction to that statement that one can find.
Actually, you see it all the time in pennyland. I don't expect KMAG to be any different. It primarily manifests itself when some 'negative' news or surprise information comes out that is not, by any plain reading, positive information and an immediate attempt at rationalizing occurs by some heavily invested shareholders. Either by completely discounting it, ignoring it, or by representing that it was "known all along, so it is not inconsistent with my view".
Because to say otherwise leads to a dissonance.
Cognitive dissonance
It's illegal to short a grey stock.
They can be equally problematic.
I predict that there will be an 8K that will regurgitate the PR only. No 8K at all would be about as clear as it gets that it was not a material event to GTGP. Although he has done an 8K for a trip to Butte....
So nothing will be clarified.
But then we have an "adequacy" issue.
Waiting to see.....
GTGP CEO has been here before....hmmmmmm
http://www.sec.gov/litigation/admin/2009/34-60230.pdf
How does a private company do this within a Rule 701 exemption?
Someone needs to tell FINRA.....they got nothin.
And the 8K gave some of the reasons why...my favorite is that if it was wholly owned, it would require GTGP to receive restricted shares....ohhhh....and no investment bank was going to invest in GTGP (in so many words).
There is another clue as well. I am still trying to figure out what this could mean insofar as %'s.
It should be noted that in either event, the percentage that Global would own directly as a company will still be classified as an insider and may still be classified as control predicated on its equity percentage as well as James Fallacaro, President.
So does "control" mean when GTGP and FALLACARO's percentages are added together. It is pretty clear that Fallacaro will have his own share block of GTHI independent of GTGP.
The plot thickens.
Where is that number coming from? TIA
So the October 18, 2011 8K is wrong?
Well if Jim is the "owner" and an 8K is not required because the acquisition deal was not a material event to GTGP....then I would say GTGP shareholder have been significantly misled.
If it is a material event to GTGP, an 8K is required to be filed within 4 days of the event.
I don't really have an opinion. Maybe they meant CEO.... and not owner. But it is another confusing aspect to this question.
...don't get me started on NDA's
The favored tool of a pink CEO.
And actually, if the deal was signed on Monday, and it is a material event to GTGP, then we should see an 8K by Friday of this week.
If we don't, there are only a couple of things that could mean.
You are exactly right. I would not expect financing to come without equity in return in a situation like this. But what has peaked my interest is the lack of transparency in this most fundamental of questions....and what appears to be an attempt to obfuscate the issue by carefully chosen wording...instead of just saying it like it is. Although some would not want to acknowledge the risk here, what did GTGP have to contribute? In reality a 1% ownership would satisfy all statements, PR's and 8K's to date.
Looking at it another way, what does the "investment bank" care about GTGP beyond its equity contribution. They only care about how the private entity is going to be divvied up. There is a reason that it was set up this way. The explanation is that an investment bank would not invest in a small publicly traded company. So GTHI is a big private company and more worthy of investment than GTGP? Nonsense, it is because they may have seen the writing on the wall for GTGP and its filing status and not wanted anywhere near it. The rationale given in the 8K rings a little hollow.
As I learned on another suspended stock that had an "acquisition" component....if something isn't clear....there is usually a reason...which it is will fall far short of common shareholders expectations.
Trust is a very dangerous thing in penny stocks.
We will see what unfolds.
Are you just ignoring the October, 18, 2011 8K (a legal document BTW) because it doesn't support the narrative....or do you just think it is wrong?
No other option.
By the way, just for verification, a posting of current and former employers would be very helpful in validating that vast experience.
Why is this important if you don't believe what I say anyways? ...and putting that on a message board?? LOL
(Btw - where did I say "vast experience"?)
Like I said before, this "PR IS COMING" is like the permanent sign above the bar that says "FREE BEER TOMORROW"