I am writing this to myself because I just want to add to what I wrote earlier.
I thank some of you for for the link to the Bloomberg article about OTC stock scams, however, GNNX DOES NOT and I repeat, DOES NOT smell like a stock scam and I will tell you why.
1)
I did an exhaustive search on Lexis-Nexis and paid a private investigator to do a complete background check on the Logans(Don and Barrie),Carl Conte, Milton Miller-EVP, Glenn Morinaka-CFO, David Lamberstien-Director, Lou Vector, Tony Nichols and Dutch Associates.
THE RESULTS?
Well all turned out CLEAN. No criminal records, no securities laws violations, no outstanding warrants, ZILCHO!! I'm out $2,500 for the investigators fees and expenses but at least these people are not CROOKS!!
2)
Don't think that none of these people are milking the the company either by writing themselves huge amounts of options and huge salaries. Why? because none of the company's executive are taking in salaries. I think they have an incentive to make GNNX work or else they make no salary. Here is the proof from the Form 10-12g:
TEM 6. EXECUTIVE COMPENSATION
(a) No remuneration has been paid to or is contemplated for
officers and directors except reimbursement for out of pocket
expenditures for activities on the Issuer's behalf.
(b) For the fiscal year ended December 31, 1997, the Issuer paid
no compensation or consulting fees to its executive officers as a
group.
(c) The Issuer is not a party to any employment agreements. No
advances have been made or are contemplated to be made by the Issuer to
any of its officers or directors.
(d) The Issuer has no retirement pension, profit shearing or
stock option plans or insurance or medical reimbursements plans
covering its officers and directors, and does not contemplate
implementing any such plans at this time.
ITEM 7. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
There are no relationships or transactions to be reported.
ITEM 8. LEGAL PROCEEDINGS
The Company is not a party to any material pending legal
proceedings and, to the best of its knowledge, no such action by or
against the Company has been threatened.
3)
Now Don and Barrie Logan own 9.2M shares, the rest of the board of directors owns another 1M shares (look at my previous post). All these shares are locked up and restricted from being sold, so they can't just dump the shares into the market. They can't sell until March of 1999, which is when the restriction is over.
In fact, of the total 21M+ shares outstanding only about 5M shares are freely trading, hence the FLOAT. Here is my proof, again from the 10-12G:
ITEM 10. RECENT SALES OF UNREGISTERED SECURITIES.
The Company recently completed an offering under Regulation D
Rule 504. As of May 18, 1998, there were 21,529,607 shares of the
Company's common stock outstanding. Of these shares, 5,452,857 shares
are freely trading, while 16,076,750 are subject to trading
restrictions.
Now my question to all of you out there-- do you think the evidence leans to some scam job? I THINK NOT!!
If you call the transfer agent, you will see that the shares outstanding are still 21,529,607 so I doubt they are diluting any more. In fact to prevent dilution Mr Logan has used his own shares for the most recent acquisition. FOLKS THAT IS UNPRECEDENTED!! I do think Mr. Logan is honestly trying to do everything in shareholder's best interest, IN FACT since he and his wife own 9.2M shares his personal net worth is at stake. IF YOU PEOPLE THINK YOU HAVE HUGE PAPER LOSSES....HOW DO YOU THINK THE LOGAN'S FEEL? THEY WERE HOLDING OVER $36M WORTH OF STOCK AT ONE POINT. NOW THEY OWN $4.5M WORTH.
How many OTC BB stock scams out there actually file anything with the SEC, little alone an attempt to get the company to Fully reporting status? Not many, I assure you.
Ok to recap
1) No criminal records
2) No salaries, options, pensions, health benefits for officers
3) 1 year stock trading restriction ending March 1999 on all stock owned by the the LOGANs and the rest of the board of directors
4)Fully reporting paperwork
5) Management is anti-dilution
No dumping of stock, management owns 50% of stock
JUST RELAX FOLKS,
THE MM ARE THE ONLY ONES PLAYING WITH OUR MONEY. THE COMPANY WILL PERFORM. FORGET ABOUT THE STOCK PRICE FOR A WHILE. We will all be laughing at these ridiculous prices soon!!!!
Regards
TOM |
