Troubling quotes from the interviews.
These look like 10b-5 violations to me. What do you think.
Harris - "This means, by owning one share in this company, in the next two years, you will receive shares in 17 different spin off corporations, guaranteed!"
About the spin-off subsidiaries
Harris - "90-95% of them are going to succeed successfully without any problem."
Harris - "We reorganize, "the financials of the corporation are newly incorporated........... What happens is we take the new book value of the new consolidated corporation, 111 million outstanding shares. We have 48, 62 on FHAL. The combined total of 111 divided into your number and that gives you your book value, $7.21. You take your $7.21 value and you either start trading at your book or you can go two to three times. In an IPO you give an explanation as to how you come to your figure. You set your figure two to three times, it's common in the market and if anyone says different, they don't know what they are talking about. Two times the book is the $15 number that we chose. We will halt trading on the day, at the completion of the merger, after the 10K is filed, we will halt trading and come back out the next day, under the new symbol, and at $15 per share."
Interviewer - "So there is no guarantee of a $15 stock price, is that what you are saying?"
Harris - "There's a guarantee of a $15 stock price at the completion. At the completion of it, option C, which is more than likely what the corporation is going to do, this stock will be reset to $15. It doesn't matter if the day before it was trading at $2.10, if it was trading at $5.10. Under the reorganization structure, the company's stock price will go into the market, under CVSU at $15 a share.
Interviewer - "But the price is determined by what the market will bear. What if the market says "were going to pay you $2 a share? Are we going back to Plan A or are we sitting with a value of $2 a share?"
Harris - "I think you've been playing a little bit too long in penny stocks to ask that question on a company that's going to have $500 million in liquid assets to include $300 million in cash in the bank. Google went out at $85 and shot to a couple of hundred in a couple of days and all it had in offers to the whole IPO was $500 million in cash."
When asked about the float Harris responded "there should not be a float remaining as of now"
Interviewer - "The company has bought up most of the existing float, if not all of it?"
Harris - "Negative, the company started buying float and activity picked up and we stopped buying the float to let it buy itself up."
Interviewer - "So if CVSU didn't buy the float it's still out there, correct?"
Harris - "Combined total between CVSU and other groups we've had acquiring the float, there should not be one as of right now.
Interviewer - "Were these shares bought by CVSU the company or by CVSU insiders?"
Harris - "If you go to the reorganization plan, you have a wholly owned subsidiary which the IRS site refers to as "P", ok? "P's" the one the shares are transferred into in that situation. So, it's been a trust that's been set up to acquire and the trust has not acquired the majority of the float but we know of other people who has been obtaining the float."
Interviewer - "Are those shares that are going to become treasury shares and be cancelled or are they going to continue to be issued shares."
Harris- "They will be held in the treasury and, if needed at a later time, released for capital."
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