AVT Inc. (fka AVTCQ)

[samsamsamiam]

since that isn't likely to happen again?

It did just happen again didn't it? - with that Ironridge deal they made.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=89665859&txt2find=ironridge

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=89667639&txt2find=ironridge



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call me crazy but it appears that Ironridge Global is doing the exact same thing Sequoia International did a few years back and were litigated for it.

http://www.sec.gov/litigation/litreleases/2012/lr22381.htm

The Complaint alleges that from September 9, 2006 through January 29, 2009, in order to satisfy the fairness hearing requirement of Section 3(a)(10), more than fifty pre-settled lawsuits were filed in a Florida state court purportedly to settle past due debts owed by Unico, Advanced Cell, or other penny stock issuers (collectively, the “Penny Stock Issuers”) to Compass Capital Group and several offshore financing entities affiliated with Lefkowitz, and Sequoia International, Inc., an entity affiliated with Peacock and Traveller (collectively, the “Financiers”). The Complaint further alleges that in each case, one of the Penny Stock Issuers entered into a written settlement agreement with one or more of the Financiers whereby the Penny Stock Issuer agreed to issue unrestricted common stock to the Financiers at a substantial discount to the prevailing market price, purportedly to retire the past due debt. The settlement shares allegedly were worth multiple times more than the debt that was to be extinguished and the Financiers agreed to remit monies to the Penny Stock Issuer following the sale of the settlement shares to the public on the open market. According to the Complaint, none of the settlement agreements submitted to the court for approval, disclosed, nor did the parties ever apprise the presiding judges of, the existence of the side agreements, that the market value of the shares to be issued greatly exceeded the debts that were to be extinguished, or that significant sums of monies would be remitted to the Penny Stock Issuers as a result of the Section 3(a)(10) settlements.

According to the Complaint, at the conclusion of each of the hearings, the Florida state court granted a Section 3(a)(10) exemption from registration and, thereafter, unrestricted shares were issued to the Financiers, who quickly sold the shares on the open market to public investors unaware of the dilutive effects of the new stock issuances. Also according to the Complaint, the Financiers subsequently remitted millions of dollars to the Penny Stock Issuers, either directly or through an intermediary, as financing, making it an improper capital raising transaction for the Penny Stock Issuers.


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like Sequoia who filed dozens of lawsuits in Florida - Ironridge appears to be doing the same thing:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=89664963&txt2find=ironridge