Goldsands Development Company (GSDC)

[techtrade]

SEC investigation of CMIN/GSDC

(just a heads up, don't shoot the messenger)

http://www.sec.gov/Archives/edgar/data/1168938/000111776811000180/0001117768-11-000180-index.htm

Item 8.01 Other Events.


On March 30, 2011, we received a copy of a formal order of investigation issued by the United States Securities and Exchange Commission (“SEC”) regarding possible violations of the securities laws including securities registration requirements, financial reporting and/or market manipulation believed to have been committed by us, our officers, directors, employees, partners, subsidiaries, affiliates and/or other persons. We received a subpoena requesting the delivery of certain documents to the SEC. We do not believe that we have violated any securities laws and have been cooperating fully, and intend to continue to cooperate fully, with the SEC in regards to this investigation.


At this time, it is not possible to predict the outcome of the investigation. In the event the SEC investigation leads to action against any of our current or former directors or officers, or the Company itself, the trading price of our common stock may be adversely impacted. In addition, the SEC investigation may result in the incurrence of significant legal expense, both directly and as the result of any indemnification obligations. This investigation may also divert management’s attention from our operations which may cause our business to suffer. If we are subject to any adverse findings, we could be required to pay damages or penalties or have other remedies imposed on us which could have a material adverse effect on our business. We have no insurance coverage to cover any portion of our defense cost or any amounts that we may be required to pay in connection with the resolution of this investigation.