That depends on what the SEC decides to do about its findings, as well as the nature of the findings themselves. They could decide to halt trading in the Company's stock. They could decide to censure LSTG, with or without monetary penalties. They could decide to refer the findings to a US Attorney for prosecution. They could do something in between. Some of the options they have seem certain to put LSTG out of business. Common stockholders would lose everything in that case.
On the other hand, what is the point of waiting any longer to get the facts? The Company has had second chance after second chance over the past eighteen months, and has produced nothing. It doesn't even bother to respond to shareholders any more. It has continually published false and misleading information as if it were fact. Maybe an SEC inquiry will at least get at the truth of its situation.
Maybe, before the worst happens, shareholders should explore their legal options. Perhaps the shareholders could insist on a special meeting in light of these revelations. Perhaps they could remove Mr. Ferris and replace him with someone who knows something about mining and about running a public company.
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