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The BigHub.com Releases Bombshell News
ANT & SONS
Thomas J. Catino
4/10/2007 9:16 AM EST


Late last week, we began to track The BigHub.com (OTC: BHUB), a dormant shell that had barely traded until recently when it was mentioned as a reverse merger candidate. A press release on March 28 sparked interest in the stock because the company stated that it was concerned about the recent activity in its shares because it seemed too excessive. BigHub.com common stock listed on the PinkSheets traded on some days during the month of March, well above half a billion shares.After numerous e-mails from curious investors looking to get to the bottom of it, we began researching what could have caused such irregular trading. What we found out was pretty shocking. In 2005, individuals by the name of John Sparrow and Jason Wong registered a corporation using the name The BigHub.com Inc., according to Florida Secretary of State documents. It is not certain at this point, but there is speculation that Sparrow and Wong might have opened an account with Select American Transfer and claimed ownership of the company which would have given them the ability to change the share structure and sell shares on to the open market. A representative at Select American Transfer declined to be interviewed and Sparrow could not be reached for comment.

In a follow up by BigHub.com on April 2, the company announced it added Jayme Dorrough to the Board of Directors and has appointed Darrell Peterson as interim President. Peterson went on to say, "the company is working through counsel to update and disseminate information concerning the current structure of the company and outline the company's intent on future projects it may be involved in. We had the opportunity to speak with Peterson and he told Ant & Sons that the company was working diligently to update that information. The company's legal team was also being very pro-active and investigating the irregular trading activity that could have occurred as a result of unregistered or illegal shares hitting the open market. Peterson confirmed that there has been no share authorization increase since the last 10-Q SEC filing that indicated there were 50,000,000 shares authorized and 21,685,521 shares outstanding, despite the common stock of BigHub.com trading in excess of half a billion shares on a daily basis.

Following our chat with Peterson, the company announced it had filed and brought current corporate annual reports with the State of Florida. BigHub.com also announced Olde Monmouth Stock Transfer as the new stock transfer agent of the company. The company also announced it expected PinkSheets to update the corporate listing and once it receives documents from its former transfer agent at the end of business Monday, the company would release another update to shareholders.

Right on schedule, the company issued a press release before the opening bell this morning and dropped a bombshell. The BigHub.com, Inc. announced that Select American Transfer informed the company had 1,580,847,798 shares currently issued, an absolutely staggering amount. However, the shares issued are 1,530,847,798 more than the legal authorized shares of the Company and 1,559,162,277 more shares than issued per the Company records. The Company believes that the excess shares have been issued as unregistered shares, as defined by the Securities and Exchange Act, of a Delaware corporation unaffiliated with the Company. Select American Transfer has provided the Company with a list of all issuances of unregistered shares which commenced on or about September 8, 2005. The Company intends to engage legal counsel in Florida and Toronto to have these shares cancelled and to pursue the parties issued shares from September 8, 2005 through October 25, 2006. The Company will be pursuing damages in excess of $6,600,000.

It seems apparent why the stock has appreciated such a great deal over the past week and why more substantial gains are on their way after this news. Market forces are now pushing up BigHub.com shares but it remains a mystery what will happen when the unregistered shares are cancelled. With many shareholders probably holding amounts greater than the real outstanding share count, those illegal shares floating around right now will have to be bought back by some entity and it will certainly take a higher authority to enforce such action.
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BigHub.com has lit a flame under the Over the Counter market that has been lackluster to say the least. Specifically, another stock to watch that has exhibited similar characteristics to that of BigHub.com is Lease Smart Inc. (OTC: LSMJ) which has so far doubled in early trading on very heavy volume. Check yesterday's piece on this stock for more details.


The author does not have a vested interest in The BigHub.com Inc. (OTC: BHUB) nor Lease Smart Inc. (OTC: LSMJ).