Death, all of those outcomes are possible. It just strikes me that when companies start putting specific language in a Q that discusses the burden of SOX compliance, they are looking to delist FIRST, and then maybe get taken private. Why else mention it?
JMIH stock is heavily controlled by Herndon:
ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth certain information regarding the
Company's common stock beneficially owned on September 30, 2005 by: (1) each
shareholder known by the Company to be the beneficial owner of five (5%) percent
or more of the Company's outstanding common stock, (2) each of the Company's
executive officers and directors, and (3) all executive officers and directors
as a group. Unless otherwise disclosed, the address for the shareholders below
is 3391 S.W. 14th Avenue, Fort Lauderdale, Florida 33316. On September 30, 2005,
there were approximately 16,305,525 shares of common stock outstanding.
Number of Beneficially Percentage of Outstanding
Name and Address Owned Shares Shares Beneficially Owned
---------------- ------------ -------------------------
Carl Herndon 6,884,126(1) 42.0%
Lawrence Tierney 1,336,001(2) 8.3%
Carl Herndon, Jr. 883,750(3) 5.5%
Kerry Clemmons 275,000(4) 1.8%
Officers and Directors as a Group 9,378,877(1)(2)(3)(4) 53.4%
(4 persons)
----------------
(1) Includes (i) 600,000 shares of Common Stock issuable upon the exercise of
options at exercise prices between $.50 and $1.00 per share expiring July 27,
2006 and (ii) 250,000 shares of Common Stock issuable upon the exercise of
options at an exercise price of $.15 per share expiring May 6, 2009.
(2) Includes (i) 250,000 shares of Common Stock issuable upon the exercise of
options at exercise prices between $.50 and $1.00 per share expiring July 27,
2006 and (ii) 200,000 shares of Common Stock issuable upon the exercise of
options at an exercise price of $.14 per share expiring May 6, 2009.
(3) Includes (i) 250,000 shares of Common Stock issuable upon the exercise of
options at exercise prices between $.50 and $1.00 per share expiring July 27,
2006, (ii) 100,000 shares of Common Stock issuable upon the exercise of options
at an exercise price of $.14 per share expiring May 6, 2009, and 200,000 shares
of Common Stock issuable upon exercise of options at an exercise price of $.30
per share expiring January 13, 2010.
(4) Includes 150,000 shares of Common Stock issuable upon the exercise of
options at an exercise price of $.14 per share expiring May 6, 2009.
-----------------
These numbers don't include the recent share issuances. Plus, Herndon owns most of the production facilities that the company leases.
Why are they public at this time? They say they don't need to tap the equities market to raise the cash to operate their business..... JMIH already uses credit lines (guaranteed by Herndon) to finance their growth. If they were private, he'd be doing this anyway, so there seems to me to be no benefit to staying public for Herndon.
IMHO, I can see them deciding to delist and go on the pink sheets within the next year. I would seriously consider it if I were Herndon and the majority shareholder......
AI
