During 2000 Arete Outdoors generated cash of $644,000 through the sale of
Arete's common stock in open market transactions.
During the nine months ended September 30, 2000, Aggression Sports sold
17,456,500 shares of Arete for gross proceeds of $644,120.
Securities and Exchange Commission civil enforcement action:
In August 1999, the Securities and exchange Commission instituted a civil
enforcement action in the Federal District Court for the District of Colorado
against the Company, its former officers and directors and the current CEO.
The complaint alleges press releases issued in February of 1998 concerning a
status of a business relationship between the Company and an unrelated third
party company were misleading in violation of Section 17(a) of the Securities
Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule
10b-5. Additionally, the suit includes the Company's alleged failure to
timely file the required periodic reports with the Commission under Section
15(d) of the Exchange Act and Rules 15b-1 and 15b-13. The action further
alleges that two former officers of the Company aided and abetted the
Company's violation of Section 15(d) of the Exchange Act and Rules 15d-1 and
15d-13. The SEC is seeking an injunction against the defendants. Company's
counsel has determined it to be impractical to render an opinion as to the
outcome of the pending action against the Company and the individuals
involved.
As authorized by the Company's corporate charter, the board of directors has
agreed to indemnify, and advance fees and expenses to Mr. Raabe for his costs
of defending the action. The case progress is at a stage wherein it is too
early to predict the actual costs of the defense.
The Company had stockholder's deficit in excess of assets at September 30, 2000
of $530,529.
the Company may be required to issue
further common stock to pay executives, consultants and other employees which
may have a continuing dilutive effect on other shareholders of the Company.
Failure of the Company to acquire additional capital in the form of either debt
or equity capital will most likely impair the ability of the Company to meet its
obligations in the near or medium term.
the Company has suffered recurring losses
from operations, has a working capital deficit and a stockholders' deficit,
is delinquent on the payment of creditor liabilities including payroll taxes
and liabilities pursuant to the Company's plan of reorganization, and is
being investigated by the Securities and Exchange Commission for alleged
securities law violations. These conditions raise substantial doubt about its
ability to continue as a going concern.
Let me go on record here. I wouldnt touch this stock at ANY price.
I would HIGHLY encourage anyone who owns the shares to seek professional help . A CPA or stock broker at the very least.
You have no business investing. |
