Just a point on the wording of the Wells Notice.
On October 5, 2007, GlobeTel received a "Wells Notice" from the Securities and Exchange Commission (the "SEC") in connection with the SEC’s ongoing investigation of the Company. The Wells Notice provides notification that the staff of the SEC intends to recommend to the Commission that it bring a civil action against the Company for possible violations of the securities laws including violations of Sections 5 and 17(a) of the Securities Act of 1933; Sections 10(b), 13(a), and 13(b)(2)(A) & (B) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rules 10b-5, 12b-20, 13a-1, 13a-11, and 13a-13 thereunder; and seeking as relief a permanent injunction, civil penalties, and disgorgement with prejudgment interest. The staff is also considering recommending that the SEC authorize and institute proceedings to revoke the registration of Company’s securities pursuant to Section 12(j) of the Exchange Act.
This wording is significant. If it weren't then the latter sentance describing the 'considering of proceedings to revoke' would have been combined with the former sentance describing the 'intent to recommend civil action'.
Some have lumped them together when the SEC clearly took pains to place them under different levels of potential SEC action, with the latter being worded to communicate less of a level of possibility than the former, imo of course.
AI
