Francois, I have a few other additions for your list...
I thought that INVT's form 10 filing was very interesting. Of particular interest was the number and cost of the shares in the "float". According to the form 10:
This reverse split resulted in 419,338 shares of its common stock outstanding on or about April 17, 1997. Prior to becoming listed on the NASD Bulletin
Board, the Company completed an exempt placement of securities of 362,544 Shares of common stock, pursuant to a Regulation D, Rule 504 exempt offering, resulting in gross proceeds of $13,000. During 1998, the company sold an additional 9,008,561 of its common shares resulting in gross proceeds of $387,592.
Looks to me like all of the Reg D shares are no longer restricted. Let's see that means:
9,008,561 shares were sold to unknown parties for 4.3½ a share.
362,544 shares were sold to unknown parties for 3.5½ a share.
419,338 shares were handed over to unknown parties in a reverse split.
Somebody made out like a bandit on this one. But wait there is more. Again from INVT's form 10:
The Company issued warrants to purchase 190,000 shares of Common Stock as
follows:
50,000 shares @ $ .05 per share
50,000 shares @ $ .10 per share
20,000 shares @ $ .20 per share
50,000 shares @ $ 1.00 per share
20,000 shares @ $ 5.00 per share
The warrants expire 10 years from date of issue.
NOTE 5 - STOCK OPTIONS
The Company granted a ten (10) year option to purchase 1,000,000 common shares at $.10 per share as a part of settlement agreement. This option has not yet been exercised.
NOTE 8 - SETTLEMENT
The Company settled a lawsuit with a former consultant to the Company. Terms of the settlement called for a payment of $80,000 and the issuance of 525,000 shares of the Company's Common stock. At the time of the issuance, the shares had a market value of $.50 per share.
Interesting that of the 190,000 shares available in warrants, 170,000 are already in the money. The Stock Options also appear to be in the money as well as the shares donated to an unknown party from the settlement.
Looks like INVT's printing presses are in working order. The only question remaining is: How is INVT going to fund operations? Clearly INVT has no source of revenue now or in the foreseeable future. Again, the form 10 shows INVT?s plans to keep the ruse alive:
If the Company needs to raise additional funds in order to fund expansion...additional funds [will be] raised through the issuance of equity or convertible debt securities, the percentage ownership of the stockholders of the Company will be reduced, stockholders may experience additional dilution and such securities may have rights, preferences or privileges senior to those of the Company's Common Stock.
Let's sum this up shall we:
1. After several incarnations, INVT, a Nevada Corporation, does a reverse merger with an alleged company in BC.
2. INVT has a large float(which appears to be growing larger by the day) that was sold to unknown parties for pennies a share.
3. Over the past couple of weeks, INVT has seen a huge spike in volume with only a modest run up in share price.
So is this a going concern or is this just another Nevada/BC paper chase? It will be interesting to see the fallout when the tents are packed up and the carnival leaves town...
Diz- |
