Replies to post #123527 on Liberty Star Uranium and Metals Corp (LBSR)

[kickedoffagain]

"... as that (Safe Harbor) protection is not afforded to penny stock issuers..."

That protection isn't afforded, or that protection isn't utilized/taken advantage of? Big difference. I don't know, seeking clarification.

[WillyburgD]

Just because you don't receive safe harbor protection doesn't mean it would be meaningless in a suit against the company.

For example, private placements may be done in accordance with 506, in which case you are protected from claims by the SEC that you violated the registration requirements of the Securities Act. But you do not have to avail yourself of the 506 safe harbor.

Similarly here, they are not immune from suit but it still may relevant in a fraud claim.