Hat Trick Beverages (HKBV) Response to SEC Trading Suspension
TORONTO, October 28, 2008 -- hattrickdrinks.com (Pink Sheets: HKBV) Hat Trick Beverages is making the following statement regarding the recent trading suspension imposed by the SEC.
The Company stands by its news release in question and given another opportunity would not have done things otherwise. The company also categorically denies the following statement made by the SEC and denounces the same. "the company is disseminating materially false information to the public".
The company intends to file all correspondences relating to this matter on Pink Sheets including the original complaint received from the SEC and its replies, so to allow the reader to formulate their own decision if in fact anything the company released to the public justifies such a claim.
The Company believes that the SEC over reacted in their decision. Needless to speculate in doing so it is the management's view that our shareholders may possibly suffer a potentially severe impairment of their investment. The company intends to do everything in its power to minimize the same. The company verily believes that the SEC contacted, the food chain and distributor of Hat Trick regarding amongst other things the validity of a contract between Hi-Health and Hat Trick Beverages. To quote:
"We are concerned that the company is disseminating materially false information to the public and want to talk to you [Hat Trick] about that as soon as possible".
The Company responded twice in writing, in a timely fashion to the SEC (see filing on Pink Sheets) which is self explanatory. The company's position is, and remains so that at the time when investors would have made enquiries, it is likely that the only employee familiar with the product, or our Company name, was the specific buyer. This continues to be the case, and will probably only change once the product is on store shelves, and is entered on the Hi Health database of products.
Additionally, Pinnacle Distributing responded in writing with confirmation of the order. The company believed that the proof furnished to the SEC by the company was good and valid and more than sufficient to dismiss these unfounded allegations. The Company also believed that the SEC may still make further inquiries just to make sure, and rightfully so, however if any further questions surfaced the company would be contacted in any event to answer the same.
The company is advised that the investigator from the SEC repeatedly contacted Hat Trick's distributor to investigate further and challenge the validity of the information provided. Again the management saw this as a routine process of the SEC and that the matter would soon be over and dealt with. The company also stood by its beliefs that if any other questions should arise the SEC would contact the company in any event.
The company was advised that both the Distributor and possibly the client having received excessive inquiries into this matter, simply choose the path of least resistance. They subsequently severed all relations with Hat Trick Beverages. The tone and demeanor of the SEC from the onset is evident from the very first call and letters received from them was well documented.
This, in and of itself, will resulted in a loss of revenue for the Company, and actually contrary to investors' best interests. The subsequent trading suspension simply magnifies the negative impact on investors and all concerned.
The Italian merger has also received a set back with the Italian company evaluating their next move. The company will also scale down or even suspend their aspirations of expanding its hot drink division into USA via franchising model. The franchising laws and subsequently the required State filing of the UFOC is designed for unaccredited investors and an unfair label and tag on the company claiming (sic) the company is disseminating materially false information to the public, no matter how untrue and unfounded simply does not sit well in the UFOC disclosure documents.
The Company intends to continue to operate under 'a business as usual' policy, and is confident that this matter will be satisfactorily resolved to the benefit of its shareholders. Immediately the company will retain an SEC qualified law firm to address this matter with the SEC and intends to seek a retraction of this decision which in the company's view is simply noting more than an overreaction by the regulators, acting under undue pressure.
Again this is worth repeating, the Company will be uploading all of the relevant documentation to the Pink Sheets, so that the reader may Draw their own conclusions if in fact anything inappropriate was done by the company, as ultimately the company intends to return to the trading status, and intends to do so with clean hands.
The company firmly stands by its position and the press release announced.
CONTACT: corporate@hattrickdrinks.com SOURCE Hat Trick Beverages, Inc.
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