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Friday, April 12, 2024 12:21:37 PM
KEGS is citing an SEC rule that does not exist. The 1934 Exchange Act section is 21E, not 27E. In addition, the SEC has consistently ruled that the safe harbor protecting against forwarding looking statements is not available to issuers of penny stocks.
From a SEC opinion letter:
27A(b)(1)(C) of the Securities Act and Section 21E(b)(1)(C) of the Securities Exchange Act expressly state that safe harbor for forward looking statements does not apply to statements made by companies that issue penny stock
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