The Nov 1 announcement about the CFO resignation, and CYSS getting forced off OTC and onto "pink sheets" will just confirm fears that this stock is getting shut down.
Here are some post-mortem comments on the Crys-Tel 10SB12G SEC form (form at www.sec.gov, do Edgar Archival search):
It is interesting that Kaiden SA (Galerie St. Francois 8 P.O. Box 2224 CH 1002 Lausanne, Switzerland) is listed as a major shareholder, but nowhere is there a signature or other information identifying the people behind Kaiden SA. I must again ask: is Kaiden SA related to Martin Kaiden, a former broker who is subject to an SEC-imposed trading ban related to an attempted securities fraud?
Examination of the form will show that Robert Papalia is listed as signing a number of documents on Crys-Tel's behalf. Robert Papalia is not a Crys-Tel officer or director, however he and his brother Anthony Papalia (senior) are involved with Crys-Tel parent companies Pacrim Information Systems and Metals Research Group. Robert Papalia's history includes a 1977 arrest by Scotland Yard in an alleged plot to defraud investors through Metals Research Group, which claimed to have a gold mine in B.C. (Robert Papalia and his brother Anthony Papalia (senior) were later acquitted).
Under "ITEM 1.DESCRIPTION OF BUSINESS" it is stated that:
"Crys-Tel Telecommunications.com, Inc. ... is establishing itself as an international facilities-based telecommunications carrier ..."
Finally, with this SEC form, we get to see how pathetic Crys-Tel's finances are.
The company has no significant assets ($15,000 cash and $108,000 worth of equipment) with which to accomplish its grandiose plans.
Also, according to the financial statements, there was ZERO revenue from telecommunication services, in sharp contrast to the unbelievable projections that were previously made, in the header text of this S.I. thread.
The only revenue was from the sale of 2 internet gateways, which is interesting because the gateways were supposedly going to be operated by Crys-Tel for VOIP and other services.
Side question: did LiteWave (otc LTWV) buy the gateways? LTWV is another Vancouver-promoted P&D that is pretending to be located in the USA.
Crys-Tel's SEC form also states that:
"On March 3, 1999 the Company offered and issued to a single individual, Giacomo Luca Di Consolo, 909,000 shares of common stock in exchange for acquiring a 20 percent interest in an Italian business called Academy Network Solutions. That transaction was subsequently rescinded by the Company for nonperformance and the share issuance was cancelled as of the issuance date of March 3, 1999."
The above statement is incorrect and is probably a deliberate lie, if it indicates the share issuance was cancelled on March 3, 1999, IMO. Crys-Tel issued a press release March 25 1999 claiming that it had completed the purchase of Academy Network Solutions, which is supposedly the largest ISP in Italy. In fact, Academy Network Solutions may be a fictional company that was dreamed up by by Crys-Tel to attract investors to Crys-Tel stock, IMO. Academy's only presence on the internet, a web site at www.academy.net, recently disappeared and the web address now has been re-assigned to an unrelated U.S. company. Crys-Tel never announced the cancellation of the claimed Academy Network Solutions deal.
Under STATUS OF PUBLICLY ANNOUNCED PRODUCTS AND SERVICES it is stated that:
"On January 27, 1999 the Company announced that it had entered into a joint venture agreement with Crys*Tel Italia S.P.A. to provide its Internet telephony services in Italy. The Company is presently negotiating with Crys*Tel Italia for the purposes of restructuring the joint venture agreement. Particulars include the ownership of Crys*Tel increasing from 30 percent to 51 percent. The Company has completed Beta testing between Milan, Italy and Vancouver and the system is now ready for commercial use. Crys*Tel Italia has given the company a verbal commitment for the ordering of an additional 13 gateways by October 12, 1999. Crys*Tel Italia's initial plan for the installation of 100 gateways throughout Italy is still on line but due to unforeseen technical difficulties and a change of office venue, timelines have been extended."
It appears that Crys-Tel Italia may also be a fictional company used to attract stock investors, IMO, since its web site www.crys-tel.it recently disappeared, and in fact the web page never had any significant content.
"On March 30, 1999 the Company announced that it had placed an order for an additional 21 new gateways with Nokia Corporation for IP Telephony valued at over $1,000,000.00 U.S. to expand its global network. This order was cancelled due to a withdrawn commitment from Academy Network Solutions. "
Crys-Tel issued a press release claiming a $1,000,000 purchase of Nokia gateways, but did not announce the cancellation. As previously posted, I contacted Nokia directly and was unable to confirm that the order was received.
In summary, the above information indicates that, at the very least, Crys-Tel management failed to inform shareholders of material changes, or at worse has deliberately produced false press releases in order to defraud shareholders.
Crys-Tel is just another pump-and-dump stock promotion, IMO.
ILG
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Here are some of the press releases:
Company Press Release
SOURCE: Crys-Tel Telecommunications.com, Inc.
Crys-Tel Telecommunications.com, Inc. Announces Intended Purchase Of Academy Network Solutions
FORT LAUDERDALE, Fla., Feb. 8 /PRNewswire/ -- Crys-Tel Telecommunications.com, Inc. (OTC Bulletin Board: CYSS - news) announced today that the company has signed a letter of intent to purchase 20% of Italian based Academy Network Solutions.
Academy Network Solutions is currently the single largest ISP (Internet Service Provider) in Italy with over 200 POPs (Points of Presence) across the country. With offices throughout Italy and in New York, Academy provides turnkey Internet services, satellite communications, networking telephony and E-commerce solutions to its corporate customers.
...
Company Press Release
Crys-Tel Telecommunications.com, Inc. Announces Completion of Purchase of Academy Network Solutions
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--March 25, 1999--Crys-Tel Telecommunications.com, Inc. (OTC Bulletin Board:CYSS - news) announced today that the company has finalized the purchase of 20 percent of Italian-based Academy Network Solutions for 709,000 restricted shares of Crys-Tel.
With offices throughout Italy and New York, Academy provides turnkey Internet services, satellite communications, networking, telephony and E-commerce solutions to its corporate customers. Academy Network Solutions is currently the single largest ISP (Internet Service Provider) in Italy with over 200 POPs (Points of Presence) across the country. Plans for expansion into several other countries in Europe are currently under way with the first POPs scheduled for Germany in mid-April.
Academy plans to have over 400 POPs throughout Italy and the rest of Europe by the end of 1999.
Additionally, Academy Network Solutions has recently acquired 25 percent of Crys-Tel Italia from our partners in Italy.
Hence, Crys-Tel Italia is now 25 percent owned by Academy, 45 percent owned by the founders of Crys-Tel Italia, and 30 percent owned by Crys-Tel Telecommunications.com, Inc.
ABOUT NETWORK ACADEMY SOLUTIONS
Academy Network Solutions was formed two years ago with one point of presence in Italy. They are currently the largest ISP in Italy with over 200 points of presence. Academy is a partner of the Eurocom Group, which is one of the leading telecommunications groups in Israel. The company provides turnkey Internet and Telephony operations to corporate customers. In 1998, Academy Network Solutions had revenues of $4.5 million USD. The company projects revenues of $75 million USD for the year-end 1999 due in part to a recently finalized $42 million USD contract with a major telecommunications group in Italy.
...
.
Company Press Release
Crys-Tel Telecommunications.com Inc. Expands Global Network
VANCOUVER, British Columbia--(BUSINESS WIRE)--March 30, 1999-- Crys-Tel Telecommunications.com, Inc. (OTC BB:CYSS <http://quote.yahoo.com/q?s=cyss&d=t> - news </n/c/cyss.html>) announced today that the company has placed an order for an additional 21 new gateways with Nokia (NYSE:NOK.A <http://quote.yahoo.com/q?s=noka&d=t> - news </n/n/noka.html>) IP Telephony valued at over $1,000,000 US to expand its global network.
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