A little research shows that JB could have told the pipe investors that there was a restatement in the works and what he thought the impact would be, IF he had them sign a non-disclosure agreement first.
That would prohibit the prospective pipe investors from disclosing the information to others and from trading on it outside of the pipe transaction.
Once the 8K was made public the non-disclosure agreement would not be in force. If there was other non-public information provided to them the trading prohibition would be in effect until that information was made public.
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