Mac...more so than that..The management of a publicaly traded company HAS A LEGAL FIDUCIARY DUTY to tell shareholders when something has fundamentally changed in the companys business plan...ie..that their sole source of revenue (Wencor) was going to dry up. The Digisystem just won't happen and the Digiplayer will also stop being sold. Edig management knew back in April that this was the case ..yet they waited till after the dilution and their raises were approved by shareholders before disclosing the fact. They had a legal obligation to notify shareholders before the shm. The PPS is now at seven cents.
But in reference to edig management selling shares. This is the likely scenario, IMO.. After the unrealistic spike to 24 bucks in Jan. of 2000, the price per share started a rapid decay. Within a couple of weeks after the peak, the share price was half of what it was before ..and falling daily. Seeing their immence paper wealth vanishing before their very eyes, edig management released an official company press release on Feb. 3,2000 announcing to the world that edig has applied to the NASDAQ stock market to be listed with them. The news temperairly stopped the downward price. And..on the very same day...and the next trading day, Falk, Putnam, and Warden dumped millions of dollars of their cheap shares making them wealthy.In the press release, Putnam was quoted as saying," we believe that we have met the requirements for a listing". That is where edig grossly lied. Two of the main requirements for a NASDAQ listing were for the share price to be over five bucks for thirty days, and an independant auditor in place. The share price was only five bucks for 22 days, and the independant auditor was not installed for another two and a half months. Falk and Putnam lied to the world for one reason only.. To get their money out of edig asap..PERIOD.. This is all a matter of historical record..
Sorry to ramble..
Hh
AI
