Now here's what I find interesting when I think about Labwire. Look at the date that the company first started trading.
HOUSTON, TX – June 8, 2005 – Labwire Inc. (OTC: LBWR), announces that the Company has begun trading under the ticker symbol “LBWR” on the Over–the-Counter market.
Now in such time they could have legally done three 504's. Here's the Reg.
B. Rule 504 provides an exemption pursuant to Section 3(b) of the Securities Act of 1933 for offerings up to $1 million subject to the following conditions:
1. The issuer may not be a reporting company, an investment company, or a development stage company that either has no specific business plan or purpose or has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies, or other entity or person ("blank check" company).
2. The conditions in Rules 501 and 502 are met except that the information requirements do not apply.
Note: If a registered broker-dealer is engaged by the issuer to sell the securities, Rule 15g-9 under the Securities Exchange Act of 1934 (the "cold call" rule) will be applicable to the activities of such broker dealer.
3. The aggregate offering price may not exceed $1 million in a 12 month period. In computing the aggregate offering price any securities sold in reliance on any Section 3(b) exemption and any securities sold in violation of Section 5 must be included.
So yeah, that's pretty cool, and in my opinion shareholder friendly.
Oh, and speaking of shareholder friendly, I find it very interesting that Labwire did not even use all of it's initial 504 offering.
(from the 10-12g)
In the year ended December 31, 2005, the Company sold 16,107,330 shares in private placements to accredited investors for $178,828 in cash.
In the year ended December 31, 2006, the Company sold 4,177,670 shares in private placements to accredited investors for $307,205 in cash.
Holy smoke. Lookie here.
$178,828 + 307,205 = $486,003
What? You telling me they didn't even use half of the 1MM that is allowed?
Now that is what I call taking care of the share structure.
It's also what I call "shareholder friendly".
GB-ND
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