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Microcap & Penny Stocks : VLVT (was CSMA) -- Ignore unavailable to you. Want to Upgrade?

To: TraderGreg who wrote (8465)	7/28/1998 11:31:00 AM
From: David Smith	Read Replies (2) \| Respond to of 11708

It's a popular scenario that certainly happens. People that are well connected can always sell restricted shares off shore, at a discount. That is not what RBM is saying. It looks like they don't have possession of the restricted shares. He is saying they sold shares on the open market and were intending to use the restricted shares (once the restriction is lifted) to cover their short position. He is saying that they now have an uncovered short position and at some point in time they will have to buy on the open market. Since this can be done by anyone who has restricted shares, just sell a short position and use the restricted shares to cover later, why have restricted shares? Generally to prevent this, the parties agree that there will NOT be an unauthorized distribution of shares. This is one of the violations that the CSMA's attorney listed: The problems include but are not limited to the following: I. Global intended to distribute the Coconino shares to a large number of Individuals and entities on what appears to constitute an unregistered distribution of Coconino common stock; David