Rory, check out the updated SB-2 filing. Reads like a suicide note.
They are selling millions of shares off at cut-rate prices (1.3 million shares to Oriental New Investments at $.16 per share in October, 27 million shares about to be sold to Triton under market prices in a similar arrangement).... shares which almost immediately get dumped into the float, driving the price lower. These were not restricted shares - read the filing.
Another example - JNNE/GONT selling these shares on April 16, when the stock was selling for 70 cents per share: "On April 16, 1999, the Company issued 4,000,000 shares of common stock at a price of $.03125 per share to LaSalle Investments, an accredited investor, under Rule 504 of Regulation D promulgated under the Securities Act, resulting in proceeds to the Company of $125,000."
Not very "shareholder friendly" to anyone who bought at 70 cents that day. Gee, you think LaSalle still owns those shares? Funny, they get no mention as a large shareholder in the filing.
GONT is desperate to get short-term cash to keep running, so what do they care about the stock price? At least they can keep the stock trading and hope for a miracle.
As long as GONT keeps undercutting their own stock price, the stock can only head in one direction - down. |
