Re: Looks like ABFG might be forced to spend between $250,000 and $1 million to comply with the new SEC guidelines
According to market-pulse.com, ABFG paid Market Pulse "250,000 shares/ 750,000 shares pending" for a promotional writeup. It appears that this transaction was made somewhere around April 7 (see #reply-8756498). According to the new SEC guidelines, as cited in an MSNBC article by Chris Byron:
Now, the SEC's decision to issue tough new interpretive language for Rule 701 of the 1933 Act has put companies on clear notice that they cannot use their stock as payment for the services of stock promoters and investors relations operators.
According to an SEC spokesman, companies found in violation of the rule will be required to buy back the stock in question for cash, and must carry the obligation as a balance sheet “contingent liability” until it is discharged. The official said offending firms also are subject to civil enforcement actions by the Commission.
What's more, said the official, there are no “grandfather provisions” in the rule, meaning that any promoter who received stock for his services before April 7 cannot continue engaging in the services afterward.
msnbc.com or #reply-9849922 or
niri.org
So, the burning question is, on what day did ABFG issue the initial 250,000 shares to Market Pulse? Additionally, has ABFG made good on the other 750,000 shares? If so, on what day were those handed over? If not, what obligation might ABFG now have to Market Pulse to make good on their contract with them? And, lastly, does ABFG have the cash on hand to pay any potential fine that might be levied against them?
- Jeff
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