InvestorsHub Logo
Followers 209
Posts 32159
Boards Moderated 1
Alias Born 06/30/2009

Re: CYRXorbust post# 218610

Monday, 09/28/2009 3:26:36 PM

Monday, September 28, 2009 3:26:36 PM

Post# of 346917
While the company would not ordinarily be required to file an 8-k notifying the public that a formal SEC investigation had begun, there is a wrinkle in this case that I think caused it to be required. Try this:

1. RME is a shareholder of SPNGE.
2. MM and SM are both officers of SPNG and controlling persons of RME.
3. The fact that RME was aware (obviously) of the investigation made that information subject to the selective disclosure rules.
4. So, by law, all shareholders had to be informed.

http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr;sid=eec133c15727f0680a98b3a13928dafb;rgn=div5;view=text;node=17%3A3.0.1.1.4;idno=17;cc=ecfr
The only thing is, I believe that the filing should have been made "simultaneously" versus "promptly" under the rules. So it was a little late. People selling after the letter and before the filing might be in trouble.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.