ask sunncomm:
Q: Let me first ask if any insiders are purchasing or selling shares of SCMI. If so who,when, and the reason for buying or selling.
Also if purchases are made are these shares purchased on the open market or are they options that are given out to the management..
Who do you use for financing? A Lot of companies that I have seen have equity agreements with lenders which dilutes the stock tremendously. It is referred to Toxic Financing. One such Company that does this type of financing is Cornell, Are you affiliated in any way with them.
How do you feel the Naked Shorting by the Market Makers has affected your Company and what do you plan on doing to counteract this shorting?
Thankyou,
Wayne mercier (3/2/2005 5:48:10 PM)
A: Hello Wayne,
All good questions. First, even though SunnComm is not a reporting company yet, insiders selling stock must file in order to sell shares they received directly from the company. I´m not aware of any significant selling by insiders. There have been some debenture conversions from loans made to the company in the past few years. Without exception, these conversions were all at pre-agreed fixed rates, thus not of the "toxic" financing category.
SunnComm employees all share in the company´s option plans where most options are priced at 20 cents or higher. There are some exceptions of lower priced options for early employees, but the majority fit in the former category.
SunnComm´s position on Naked Shorting is that it is an illegal activity carried on by organized criminals who should be prosecuted and punished under Federal Rico Statutes. Naked shorting, along with its symptom, failed certificate deliveries, put more shares in the marketplace than are authorized and, by doing so, place continual downward pressure on the company´s share value.
Soon, SunnComm will begin its transition into a fully reporting, major exchange company and expects to soon be in a better position to deal with the possibility that counterfeit shares of its company are being traded. SunnComm has formulated a plan that enlists the help of some of the most knowledgeable people in the world on the subject of countering naked shorting and failed deliveries. We expect to actualize that plan as we head toward fully reporting status and a major exchange. The plan must be kept absolutely secret by its architect´s until the time is right.
With all this talk about illegal shorting, it´s important to mention at this juncture that the company´s #1 goal is, and always has been, the growth of its products and its revenue base. Naked shorting has always been a nuisance to the company, but, in the end, it will be the acceptance of our MediaMax product line and our expansion of products around the world that will make our company great.
Hope this answers a few question for you. Thanks for taking the time to ask.
Regards,
Peter
AI
