I doubt that the company should worry about the SEC, maybe some individuals that might have traded on inside information during the many pump and dump phases of this company. The company itself seems to have obeyed the law to the letter and fleeced its investor completely legally. All the investors had to do to assure that they are not fleeced was to follow the "money trail". Investors have known now for few years that management is incompetent and take care of itself, not share holders. Investors should have seen the coming massive dilution, for the simple reason that this company was chronically short of money, and without money could not execute its business plan. Investors knew that the "Learning" deal cost $1 MM and resulted in nothing, they should have suspected that possibly, the business model is not workable. Investors simply preferred to throw good money after bad money and the SEC has no business getting involved. The funny thing is that the last 10 for 1 split might not be the last one, and if they can find a new crop of investors to pore money down that drain, they will continue and do so. You must admit that the methodology used to fund the company by selling shares at lower and lower prices (and now, if I understood correctly, a Chicago outfit has 55% of the share for very questionable reasons, yet very legal).
I am a little surprised that so many of the original posters are still around and still holding to their "faith" in management. I thought that the regular 2"x4" hits management is delivering to wake up the faithful would have eventually waken them up to what is happening. From what I can see, the company is still burning cash like there is no tomorrow, management still pays itself handsomely and prints for itself additional shares, and new promises and new deals are offered to the faithful on a regular basis. Nothing has changed and nothing is new under the sun.
Zeev |
