HLBZ, the “lie by omission scam” intertwined with the “accuse others of what you yourself are about to do scam”:
One week ago:
“"Based on the trading pattern of the stock we are concerned that our company may have been the target of a market manipulation scheme involving illegal short selling of our stock over the past year, and we are committed to investigating and exposing any wrongdoing," said Hellbiz Chief Executive Salvatore Palella.“
The CEO’s statement above purposefully omits necessary negative information about HLBZ’s filing and financial history necessary for investors to make an informed decision. If included, the facts in those regards would cast substantial doubt on the veracity of the CEO’s statement. Every statement a CEO makes in a PR should be qualified with facts so as not to be at all perceived as “misleading” and thus fraudulent. Omitted references in the statement to the negative effect of last year’s share registrations, poor financial results and inadequate sales/OS ratio on the share-price would have been an example of honesty and transparency if included therein.
The CEO instead publicly blamed the “trading pattern” (Shareprice) squarely, 100%, on possible illegal manipulation of the stock…ahead of a reverse split announcement and new 20 million share registration. The omission of the relevant facts and failure to qualify the CEO’s statement as “not misleading” is also a wrong-doing, therefore. It was a lie by omission.
In addition, the announcements of a reverse split and share registration historically have a negative effect on any share-price, thus contradicting the general positive spirit regarding the financial soundness of HLBZ the CEO’s statement above alludes to via the aforementioned omission. The CEOs statement made it appear to unsuspecting investors that the company had no other relevant financial issues worth noting when directly referencing the trading pattern. If there are five good reasons for a declining shareprice and four of them are mismanagement and the mismanager picks the one of the five that isn’t mismanagement and omits the other four reasons in a public statement referencing the trading pattern or shareprice, that is fraud in my opinion.
Illegal short selling and the CEO should both be investigated, projecting blame for financial mismanagement onto others, justified or not, is a public relations strategy and that strategy when proven to be untruthful or full of omissions can be defined as a scam when subsequently raising money via the deliberate misleading of the investment community, which an investigation may reveal.
“The Company also signed a new standby equity purchase agreement (SEPA) with Yorkville Advisors Global LP, allowing the Company to raise up to $20 million through sales of shares of common stock. This funding will be used primarily to follow the Company's strategic growth plan, which will generate more revenue and support us in our path to achieving profitability.“”
my posts are always theory and not financial advice
