Deaf-Talk Inc. (fka MGQG)

[TownScapes]

Reading through the rule 144, I can't see anything that might lead Dave to believe the restriction would be lifted one year from DT's first financial report, unless it is this:

Adequate Current Information. There must be adequate current information about the issuer of the securities before the sale can be made. This generally means that the issuer has complied with the periodic reporting requirements of the Exchange Act.

But since there are no reporting requirements for pinks, I don't think this rule even applies.

Regardless, it seems that the owners of the restricted shares cannot just dump them all as soon as they are eligible. It looks to me like the 1% rule would make any selling almost unnoticeable, no?

Trading Volume Formula. If you are an affiliate, the number of equity securities you may sell during any three-month period cannot exceed the greater of 1% of the outstanding shares of the same class being sold, or if the class is listed on a stock exchange or quoted on Nasdaq, the greater of 1% or the average reported weekly trading volume during the four weeks preceding the filing a notice of sale on Form 144. Over-the-counter stocks, including those quoted on the OTC Bulletin Board and the Pink Sheets, can only be sold using the 1% measurement.