In response to concern in the marketplace about the number of shares LifeOne has outstanding, and whether or not LifeOne has sold equity in any form or converted any reg. S debentures currently under legal dispute, I e-mailed Jayne Davis at LifeOne Investor Relations last night asking for a statement clarifying these issues. The following is an excerpt from her response:
Current shares outstanding are less than 17 million. Because of the
litigation and court directives, we have had to put 18,409,381 shares into escrow, which is more than we expect to use if necessary. It is typical to be required to escrow one and a half to two times the amount of shares that may actually be used. These figures can be confirmed in the RICO court documents. The per share accretion value projected for Southern Mortgage in a prior press release is based on these shares outstanding.
As regards the rumors about LifeOne having recently issued convertible
debentures or other forms of equity, or converted any debentures currently in legal dispute, it is completely false. LifeOne has not issued any debentures nor sold any equity since 1997. What may be causing some confusion is that several months ago, one of the parties LifeOne sold debentures to, FT Trading, resold the remainder of their debentures to other parties. This was not a LifeOne transaction. This was an FT Trading transaction. The money was paid to FT Trading's law firm, not LifeOne.
Whoever is spreading this malicious misinformation campaign should step forward and identify themselves. It's obvious that their sources are not first hand, and they are damaging this company and its shareholders by disseminating false and misleading rumors.
Sincerely,
Jayne Davis |
