As always pal, it is my pleasure: (sorry for the delay, but I do have to work every now and again)
LifeOne Investors Alliance
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June 2, 1999
Dear LifeOne Investor:
As you probably know, LifeOne has been the target of short sellers, some of whom are believed to have malicious intent towards the company. While short selling is not normally illegal, massive short selling with intent to manipulate the stock is illegal. The company and certain individual shareholders filed a stock manipulation lawsuit against individuals and entities believed to have engaged in illegal short selling of LifeOne stock for egregious profits. That lawsuit is ongoing. Nonetheless, we believe targeted short selling is still in practice for the purpose of intentionally depressing LifeOne's stock price.
A group of LifeOne shareholders is organizing an effort to remove shares from the brokers or market makers who might loan shares to the shorters. Brokers or market makers loan shares to their customers or other market makers who want to short the stock. If a large number of shareholders who hold stock at brokerage houses ask for their shares in certificate form, the stock would not be available for shorters to borrow. If your shares have been loaned to a shorter and you ask for your shares in certificate form, the shorter will have to cover his position. This could force the shorter to buy shares in the market to cover the short position, which will result in an increase in stock price.
If enough shares have been transferred to certificate form, the shorters won't be able to find enough shares to short the stock again. The group of shareholders would ask you to consider joining the effort by asking for your shares in LifeOne in certificate form. The more shares that are put into certificate form, the greater the impact this could have on any intentional manipulation of the stock. We should mention one caveat; if debenture holders have somehow been able to accomplish illegal naked shorting off-shore (outside the U.S.), a call for certificates may not have the desired effect. The company has no way of knowing if naked shorting has occurred off-shore.
The company is supportive of this effort to protect the value of LifeOne shares.
Please consider converting the investment you have in LifeOne, Inc. into stock certificates sent directly to you. The process carries a nominal charge, but if a short position can be substantiated and those parties are encouraged to cover, the benefits in the value of your investment will be rewarded. The key to the success of this program is as much participation as possible. The more certificates that individuals hold, the less opportunity exists to find shares to short or to cover a short position. We respectfully request that all shareholders in LifeOne consider and in fact do have their certificates transferred to them in their name.
Thank you for you consideration,
Fellow LifeOne Investors
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