Rig, I wish that you would also communicate to management the fact that if EFGO has any aspirations to climb to a higher exchange, this form of communication has to stop.
What we have here is a company representative putting out material information to select investors. Even if the intent is to eventually distribute the information to this board, it is still not considered public. Material information is defined as "non-public" until it has been disseminated through the national wire services and/or SEC filings.
When Michael hints at an OTC merger, etc., that is most definitely a material event; i.e., the information would affect the buy/sell decision of the average investor. Passing it on this way, without using the appropriate channels creates a tipper/tippee situation, which, on any of the higher exchanges could be a litigous, if not criminal situation. This form of communication is even more reckless in that emails never go away, and what is said today could haunt the company for years to come.
We have seen today just a tip of the iceberg of problems that can/will happen down the road if this continues. I understand why the company is taking this road of communication, especially from the perspective of containing the I/R expense. But, there is a reason that representatives of GM, IBM, MSFT, and so on don't go on private chat boards--directly or indirectly.
If the company truly intends to go to the next level, they need to start disseminating information the way the big boys do. If it goes to the material, it needs to be PR'ed and 8-K'ed--simple as that, and that can be done for $600 or less. And if it doesn't go to the material, then there is no need for a communication.
Public filings are the lifeblood of liquidity in stocks, at least in the higher exchanges. If the company intends to build the sophisticated long-term investor base they are clearly trying to attract, then they need to start communicating on the level that those same investors demand and deserve.
