I lifted this from another company’s board and substituted some of the previously made public financial projections and guidance originating from Aspen.
Read the following selection of Company endorsed statements. The key word is egregious. Do you honestly feel they were outrageous, extreme, preposterous or in another word egregious
How many people bought shares of ASR/ASPGF or were induced into holding the Company’s shares as a result of the following public financial guidance originating from the company?
1) We expect the combined companies to exit 2001 with production of over 3,000 BOE/d and exit 2002 well in excess of 4,000 BOE/d. As shown in the attached Consolidated Financial Statement, using a WTI reference price for oil of US$22/bbl (an OPEC price of US$20/bbl) and a NYMEX gas price of US$3.25/Mcf, cash flow would be $14.4 million which, pro forma the merger, would be C$0.45/share. The combined net asset value for Aspen is around C$115 million ($3.57/share) as at June 30. 2001...We strongly recommend the purchase of Aspen’s shares. - Dominick & Dominick November, 2001
2) A drilling budget of 7 million using cash flow not debt for between 60 and 100 wells this coming calendar year. - Wall Street Reporter interview with Jack dated October 10, 2001
3) Aspen can show profit with natural gas prices as low as $1.50 or oil as low as $8.00 to $10.00 a barrel. – Jack Wheeler CEOcast interview: September 2001
4) After mentioning the 5,000 plus BOEPD Grahame said and then 10,000 BOEPD. - Grahame Notman - the conference call of October 24, 2001.
Aspen may have issued misleading statements which would be a matter for the SEC and OSC. Demand the company supply proof that the above statements of financial guidance were made with a reasonable basis and not simply pulled from thin air in an attempt to induce purchase of the stock and/or cause pause to selling.
Safe Harbor does not protect against forward-looking statement egregious from their inception.
You are probably a victim of fraud in the inducement.
fraud in the inducement
n. the use of deceit or trick to cause someone to act to his/her disadvantage, such as signing an agreement or deeding away real property. The heart of this type of fraud is misleading the other party as to the facts upon which he/she will base his/her decision to act.
This is a fine line but at least some of these projecions seem outlandish in my opinion. Am
AI
