Cartel Blue Inc (CRTL)

[CSykes]

Please don't take this as me being rude, but obviously you have a lot to learn about basic securities law before you start asking these types of questions, that the answers to will only confuse you further.

Your concerned with something that is not really related to the issue at hand. As I mentioned in a previous post, you need to understand Rule 144 and the changes that were made in early 2008 to understand the issue as it relates to RVGD.

Simply put, in my opinion based on the rules, the shares Carnes received should have been restricted under changes to Rule 144. He is in trouble for "selling" unregistered securities. The SEC itself has a wonderful time making things confusing all on their own with their half ass written regulations that can be interpreted any number of ways.

Again, I'm not trying to be an ass, or avoid the question, I can simply tell by your line of questioning and thinking that you do not even have the slightest knowledge on the subject and trying to explain it would only confuse you more.

Here is what the SEC has to say about Rule 144(i).

Question: If an issuer had previously been a shell company but is an operating company at the time that it issues securities, is the Rule 144 safe harbor available for the resale of such securities if all of the conditions in Rule 144(i)(2) are not satisfied at the time of the proposed sale?

Answer: No. Rule 144(i)(1) states that the Rule 144 safe harbor is not available for the resale of securities “initially issued” by a shell company (other than a business combination related shell company) or an issuer that has “at any time previously” been a shell company (other than a business combination related shell company). Consequently, the Rule 144 safe harbor is not available for the resale of such securities unless and until all of the conditions in Rule 144(i)(2) are satisfied at the time of the proposed sale. [Jan. 26, 2009]”[2]

Source: http://www.thelebrechtgroup.com/index.php/publications/tlg-publications/97-rule-144s-impact-on-shell-companies