"Where Saf T Lok committed the proceeds of the Reg S was curious.
Instead of pumping the funds into R&D or manufacturing, it agreed to pay $1
million - or one-third of the proceeds - to "consultants." According to
documents filed with SEC, Saf T Lok will pay A.B. & Associates, Inc.,
management consulting firm, $250,000 and Marketing Direct Concepts,
Divich's employer, $375,000. Marketing Direct Concepts will receive an
additional $375,000 if at least $1.5 million in stock warrants are exercised,
the document said. A third firm, State Street Securities, which handled the
Reg S, is also getting a chunk of the proceeds. State Street Securities is
no relation to the prominent Boston-based State Street Corp. In addition to
$60,000 in legal fees, State Street Securities received $337,500, or 13.5
percent of the sales price of the common stock. And the company will
"receive a 13.5 percent fee of the sales price of the stock underlying the
warrants if the warrants are exercised," according to an 8K filed with the
SEC last November."
stockdetective.com
Take for what it's worth..it's from last year..DD |
