I had a technical question. Maybe someone could provide some guidance. Veronica is especially astute on these issues so if you have any ideas let me know VF.
I was looking over this latest report and was reminded of a number of old issues that remain unresolved and unanswered. One in particular is the dividend period and one particular transaction. And these are factual events reported publicly by MRIB.
On March 20, 2014 MRIB declared their dividend with an ex-div date of March 28. On March 24, MRIB issued 6,500,000 free trading unregistered shares in return for $6,500 in cash to an unknown source in reliance on SEC Rule 504. The next day MRIB hit it's all time high of $.045. The dividend was paid the following Friday and MRIB was just of that high at $.041. The way I see it, some unknown individual put $6,500 in the kitty on Monday the 24th and by the following Monday realized a gain of $292,000 and $13,325 for the stock and dividend respectively. The whole deal is a little difficult to unravel because a great deal of effort went inot trying to cover up the transaction. It's reported three different ways in three different places in the reports. In the equity balance sheet there is a paid in contribution of $65,000 but looking further it appears to be a loan. Regardless, it was $300K for $65K at best.
So whomever got this ridonculous deal, in the matter of one week, walked away with around no less than $235,000 and possibly $305,325 given a debt position! And this wasn't some penny stock phenomena. When the deal was done the stock was already trading at its highs. It was very clearly a theft and inside job.
Here's my question(s). We know who had the power to cut the deal. But who was the lucky recipient? And to that end, the big question for me, how is it that MRIB could do this deal without filing a Form D which is required even for Section D, Rule 504 registration exempt offerings in both Nevada and California? I've read the state statute and SEC rule over and over and there's no way around it other than to simply break the law and ignore it and hence, no one would never know who was involved in this "heist".
Margrit basically gave away more than $300K to someone in return for the price of a used ten year old Toyota. Does that make any sense? When she cut the deal the stock was at its all time high and at the very least the deal should have been valued at $299,000. She took $6,500? Sorry folks, that's not kosher. It's looking a lot more like serious stock fraud and theft.
The failure to disclose the parties to the transaction is a serious cover up. How much does anyone want to bet the luck ticket holder was Margrit, her family, an insider or all or combination of the above? And let me ask you this as Section D and rule 504 amounts to an offer of securities for sale to the public... If Margrit offered you stock with a current value of $300K with a dividend coming in a few days for $6,500 would you take it?
Back to the D filing. Given this information there was clearly a crime committed. Margrit is ultimately culpable. The failure to file simply makes the transaction anonymous. So how did she do it without getting caught or did I miss a loophole? Let me know if anyone thinks they know but this has to be looked into.
