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Monday, May 05, 2008

[LBWR]: Labwire, Inc. caught issuing yet another false and misleading press release

You might remember that this blog pointed out the October 3, 2006 false and misleading press release issued by Labwire, Inc. (LBWR) - click here.

Now, it turns out that LBWR has been caught issuing yet another false and misleading press release. This time about its revenues that appear to be missing.

1. On July 25, 2005 LBWR issued a press release titled:

Labwire Subsidiary Begins Providing Security Services at Norco Refineries
Canine Surveillance Units Deployed for Bomb Detection at Oil and Gas Facilities

2. In the press release discussed in paragraph #1 above LBWR implied that it has begun work and was fully involved in on-site security services since the middle of 2005, thereby implying revenues from this company business segment for 2005:

"Labwire Inc. (Pink Sheets:LBWR) announces that the Company's wholly owned subsidiary, Workplace Screening Services, has begun providing security services to the chemical facilities and oil and gas refineries in Norco, Louisiana, consisting of canine bomb detection and canine surveillance. The first canine team was successfully deployed on June 1, 2005..."


"Labwire is currently working with four of the five facilities in Norco through a contract with one of the world's largest oil, gas and chemical companies."

3. Therefore, it would be expected that LBWR generated revenues in this particular business segment during the year 2005, particularly with the strong wording in the press release described above.

4. However, in a March 20, 2007 press release regarding results for 2006 and 2005, Labwire, Inc. specifically stated that the canine security and surveillance business segment of the company had generated ZERO REVENUE in 2005. The same was stated for "Management Services" - ZERO REVENUE in 2005. Here is the press release:

5. What happened to the 2005 revenues?...poof...gone...missing.

6. The question should be: Did the false and misleading July 25, 2005 press release artificially inflate the stock prices of LBWR and did the company issue common shares at the artificially inflated stock prices to investors in private placements effected after the date of this press release during 2005 and 2006?

7. How can there not be revenues in 2005 for this business segment? - The July 25, 2005 press release and comments by LBWR's CEO seemed so sincere and real. What can possibly have happened?



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