Received a reply to my email to IR.
Here it is:
The following is a response from David Lott, CEO of Limelight Media Group, on the SEC filing today by the company after inquiries by Investor Relations for LMMG, LC Group:
On June 30, 2005, Limelight acquired Impart, Inc which required a re-incorporation in Delaware no later than Oct 1, 2005. On August 30, 2005, the company filed the preliminary statement with the SEC regarding the re-incorporation. The filing also included a provision to allow the company to conduct what is known as a reverse split. The company determined this is necessary to position the company for trading on a another exchange. The SEC had 10 days to review to the filing prior to it become final. However, the SEC requested information which delayed the final filing. This delay altered the plans of the company. In analysis of the current conditions of the market and the business, the board determined that it should withdraw the automatic reverse stock split.
Today the company filed a new preliminary statement with the SEC. The statement provides for a reverse split but it is not automatic. The action will be at the discretion of the Board of Directors, if and when, market or business conditions would require such an action in the interest of all shareholders. At this time, the Board of Directors do not feel a reverse split is in the best interest of the shareholders. So the question is asked "why is the item in the information statement filed today?"
The procedure that we must follow to make an amendment to the corporate charter is a 45 day to 60 day process, provided the SEC does not ask for additional information. Since the company recently experienced a comment letter from the SEC, the Board of Directors do not feel they have the luxury of simply waiting to seek an authorization for a reverse split in the future, if conditions warrant.
The company cannot be in a position to miss opportunities for movement to another exchange or other business that is in the best interest of all shareholders. According to the procedures in process, the SEC will review this filing. They have 10 days to seek additional information. After the 10 day process of review is completed and in absence of any comment letter by the SEC, I can provide much more detailed information on why the Board determined to seek a pre-approval from the SEC on a "potential" future reverse stock split. I am prohibited from commenting further no that fron until after the 10 days. However, I can assure you that no action is being taking without full consideration of what is in the best interests of all shareholders.
Thank you,
David V. Lott
CEO
AI
