TheGlobe.com Inc (TGLO)

[JAB65]

There are two main criteria for being classified as an investment company. People can look it up but in TGLO's case the reason for the reference is based on the loan/funding from Delfin. A prime example of an investment company is think Vanguard etc. I do not believe that the SEC would even attempt to classify TGLO as investment company, but they still need to disclose the possibility no matter how small. I'm sure their legal team reviewed this day 1 and made sure to structure everything so as to avoid this designation.

Private Loan Complications: The loan from a private company could be treated as a security or an "investment security" if not structured correctly, which could exacerbate the 40% test under Section 3(a)(1)(C)—the rule that deems companies with substantial investment securities as investment companies.