I think you may be right. Its going to take me some time to get myself up to speed on these matters. I just can't envision Pike getting trapped like that and having to explain to his investors how he lost millions on a penny stock. I also don't think the legalities of an issue like the one you describe would matter to him in the least.
There are also some loop hoples he might be able to take advantage of. But, let me go back one step first. I don't think Pike filed the Form 3 with the simple intent of fulfilling his legal obligation. It served that purpose, but the greater motivation was to "affirm" to the share holders that the OS was still, supposedly, 722 million. The regulation states that the percentage of ownership is to be based on the last authoritative OS number, unless the filer has knowledge, or reason to believe, it is different. So, we may assume at the time it was filed that Pike believed that the OS was 722 Million. (or at least felt his position that it was would be defensible) However, lets assume that since that time he has become aware that the OS is much greater, in the 2 1/2 - 3 Billion range as many believe, so that his percentage ownership has now fallen from 19.3% to under 5%. Bingo! Technically, he no longer has a beneficial ownership position and no control. He is thus, free to trade. And, i don't know of any rule (I am not by any means an expert) that would require him to file anything under those circumstances.
That's a pretty clumsy explanation, but I hope the thought is clear.
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