Plastic2Oil Inc (PTOI)

[the big guy]

That is interesting how you conveniently ignore the fact that the PIPE investors bought at $4, immediately before the restatement, and then promptly got screwed as the stock plummeted to below $1.

I don't think you understnad what misrepresentation is.

Misrepresentation occurs when known facts are withheld pertinent to any business deal and that affect the outcome. THe outcome here was that PIPE investors here were misled and purchased shares at $4 that they easily could have had for $1 within days of completing their purchase. Itg is quite simple.

In case you do not know, it is not necessary for the perpetrator to even know the facts. If it is a CEO, then it is enough that he "ought to have known". This principle has been firmly established in Canada.

THe basic facts are these:
- the PIPE occurred at $4. If I remember correctly they raised 2.5M.
- from the timing, the negotiations and price setting occurred during the time of the AGM.
- At that time the stock price was over $4. This stands to reason, since the PIPE would have to be at a discount to market in order to attract investors.
- within days of the last stage of the pIPE offering occurring, the restatement was announced. I remember it as being days, but it could have been a month.

CLearly, JB knew of the problems with the financials while the pIPE was being arranged. He chose to proceed and announce the restatement immediately thereafter. Maybe he naively thought the price would not collapse. NO matter. Had the PIPE investors known about the misrepresented financial condition of the company, they would not have bought into the pIPE. The act of restatement caused the price drop, which clearly quantifies the damages that JB is responsible for.

To make it even more damning, JB even referred to the media credits in his restatement. He did it to himself.

The SEC is taking the time that the media credits remained on the books and totalling up all of the PIPES and coming up with 8.x M. I distinctly remember the $4 PIPE and I think it was $2.5M, which was his biggest PIPE.
- the price fell to less than 1$.