Hi All.
Carswell just posted on Stockhouse
Hi All
Looks like Global is feeling the heat.
Carswell
February 16, 1999
Global Securities Responds To Shikaze Ralston Report
STARPOINT GOLDFIELDS INC ("STS-V;SPSMF-L")
GLOBAL SECURITIES CORP ("T54-T;V31-V;C31-Y")
- Global Securities Responds To Shikaze Ralston Report
Art Smolensky, Chairman of Starpoint Goldfields Inc. announces that in its January 22, 1999 News Release, Starpoint Goldfields Inc. quoted the conclusions of a report prepared by Shikaze Ralston, Chartered Accountants. The report is erroneously referred to as a "Forensic Audit" by Starpoint. The central conclusion of this report, which purports to analyse Global's dealings during Starpoint's shares in the period from August to November, 1996, was that Global "employed jitneys for two-thirds of its prescribed short sales on a downtick." According to these chartered accountants, 66,5000 Starpoint shares were sold at downtick prices by way of jitney trades. This and other related findings enabled Shikaze Ralston to conclude that Global had acted in a manner "detrimental to Starpoint and its ability to raise capital."
A preliminary assessment of the relevant documentation has lead Global to conclude that Shikaze Ralston was incorrect in finding there were jitneyed short sales undertaken at downtick prices. Shikaze Ralston's factual assertions in this respect are groundless. That being the case, Shikaze Ralston's conclusion that Global acted in a manner detrimental to Starpoint's ability to raise capital is without merit.
Starpoint has alleged in B.C. Supreme Court that Global's short-selling of its stock during the August to November 1996 period adversely affected Starpoint's ability to raise financing. Global maintains that Starpoint's allegations are without merit.
TEL: (604) 443-5400 Art Smolensky, Chairman FAX: (604) 443-5401
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Hi Carswell
Looks like it ,be interesting to see how the courts look on it, interesting to see the timing of the release just when the stock was moving a bit .Hypothetical case but worth pondering , if someone thought that starpoint would win they might want to accumulate a lot of stock at real low prices and then sell if a settlement was forthcoming ,of course you would have to do your best to keep the stock low while you accumulated ,
Regards
John |
