Let's start from the position that both Joe and GTEM each get a Wells Notice, which we know is true. Then compare the way in which each party has chosen to respond to their respective Wells Notice.
That is what Wells Notices are all about after all, they are intended to give the subject of the notice the opportunity to respond and react before further action is taken, hence the use of the word POSSIBLE.
In one case public verbal attacks are made. In the other case the shareholders are kept informed to the best extent possible and much time and effort is expended in working to satisfy the issues the SEC has.
We saw the outcome for one of the parties yesterday. The jury is still out on the other. I'm inclined to believe there is a much better outcome POSSIBLE for Globetel because of the way in which it has been managed. There is the obvious possibility that having isolated the criminal activity, the SEC will be satisfied with accurate adjustments to Globetel's filings so as to account for that criminal activity. There could be additional criminal activity exposed, however so far the SEC appears to be taking the approach of dealing with the individuals and requiring the company to make the appropriate adjustments. So far so good. Do I know this? No, but it is a fair conclusion based on what we know, imo. We shall see.
AI
