Replies to post #82303 on Good Vibrations Shoes Inc (GVSI)

[Major Profits]

Found this (popped up in a Google search but seems only regarding SPACs), but not looking for any more.

https://corpgov.law.harvard.edu/2021/06/07/house-releases-draft-legislation-eliminating-spac-safe-harbor-for-forward-looking-statements/
[/quote]Safe Harbor for Forward-Looking Statements

As noted in the Coates statement, the safe harbor for forward-looking statements currently excludes statements in an offering by a “blank check company.” The federal securities law defines a “blank check company” as a development stage company that (1) has no specific business plan or purpose or has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies, or other entity or person, and (2) is issuing penny stock. Because most SPACs do not issue penny stock, the safe harbor for forward-looking statements applies to projections and other forward-looking statements used in connection with going public through a SPAC. The draft House legislation clarifies that all SPACs, not just SPACs that are issuing penny stock, are not entitled to rely on the safe harbor.[/quote]

[Major Profits]

And that's why H*BL won't be able to use it as a defense? Well, if they wanted to that is.

For Humbl they mean absolutely nothing.

[Major Profits]

Had to get another opinion.The following was sent to me by Janice Shell (posted with permission):

TenKay is correct. Though there may be some changes coming up. Historically, a lot of SEC regulations that seem sensible haven't applied to companies with no stock registered with the SEC: Reg FD, safe harbor, and more.

That is gradually being changed. Perhaps the most surprising to most people was the revelation--when the amended Rule 15c2-11 was proposed--that the SEC definition of a "shell company" didn't apply to non-registrants. That was fixed by the amended rule.

This, from one of the posts you cite, makes no sense:

There are plenty of international stocks that trade on the OTC like Adidas and Volkswagen.

Do international companies like that, who trade on the OTC not protected by safe harbor statements in the same way as Big Board competitors like Nike and Ford?

Of course they're protected. Not only do their shares trade on major foreign exchanges, but the ADRs (American Depository Receipts) that trade in this country are REGISTERED WITH THE SEC. As an example, here's Nestle:

https://www.sec.gov/cgi-bin/browse-edgar?CIK=0000792990&owner=exclude

Same for Adidas and Volkswagen:

https://www.sec.gov/cgi-bin/browse-edgar?CIK=0001011311&owner=exclude

https://www.sec.gov/cgi-bin/browse-edgar?CIK=0000839772&owner=exclude

So... Some OTC issuers are protected by safe harbor. I'd add that the ADRs of Nestle, Adidas, and Volkswagen aren't penny stocks, either. Safe harbor may be extended to cover them, but it hasn't happened yet.

Janice sends her best to all.