[LBWR]: Promoter Creede Bighorns ("Cris") caught in yet more false and misleading statements - cash flow positive and no issuance of shares
Take a look at the post below by Promoter Creede Bighorns ("Cris") on the Silicon Investor message board for Labwire, Inc. (LBWR). He claims that he has talked to LBWR CEO Dexter Morris. He claims that he is representing the CEO's words on the message boards by saying "Either you believe Dexter through me, or not".
He further claims that he asked the CEO whether Labwire, Inc. has to sell shares in order to meet operating expenses.
The answer? - No, because Labwire, Inc. was cash flow positive.
The date of the posted message was April 21, 2006, which is in the middle of the 2006 Second Quarter.
A review of the financial statements filed by LBWR in pinksheets.com and the SEC shows what appears to be proof that Creede Bighorns was posting false and misleading statements about LBWR on the matters of being cash flow positive and not issuing shares for cash during this period in time.
The financial statements show that Labwire, Inc. lost $500,000 in 2006 and had a negative operating cash flow for the full year. They also show that Labwire, Inc. had a negative operating cash flow for the first six months of 2006 ending June 30, 2006.
In addition, the financial statements show that LBWR issued 3.2 million common shares for $215,000 cash during the 2006 Second Quarter ending June 30, 2006 - the exact same quarter of the posted message by Creede Bighorns, in which he denied that LBWR was issuing shares.
How can this Promoter continue to make so many false and misleading statements about LBWR, particularly regarding such important matters as LBWR being cash flow positive and not issuing shares for cash, both very bullish statements.
Since Creede Bighorns has stated that CEO Dexter Morris is an honest person, then it appears that these false and misleading statements did not come from the CEO, but were fabricated by the Promoter.
All this is particularly troubling, since Promoter Creede Bighorns has now admitted to selling LBWR stock into the market at many intervals during the last two years. One has to wonder whether he was selling his LBWR shares into the market soon after making these false and misleading statements, which appeared to be very bullish for any LBWR investor.
From: Creede Bighorns
4/21/2006 10:39:16 PM
Read Replies (1)
217 of 959
To the Forum -
I have spoken to Dexter. I'll post some of what we talked about....bearing in mind, of course, that this is all coming from management. As we all know, management can't always be trusted....but in this case, I trust Dexter completely.
He called me. He has heard of our angst through the grape vine, and feels wrongly accused. He called to set the record straight. After speaking to him, I believe the best is yet to come....but I have the advantage of actually talking to him. Perhaps the only way to really figure out where you stand is to go to the source....well, in this case, he came to me. Ever have a CEO call you? Me either. That's one of the things that really helps. Dexter is hitting this situation head on, and is very frank. He cares greatly about his shareholders, and wants us all to do very well in this stock. Here's some of the questions I posed.
1. Does Labwire have to sell shares in order to meet operating expenses?
Answer: No. We are cash flow positive....
...So, now each investor has to decide where they stand. Either you believe Dexter through me, or not. IMO, this the cross road where it is time to get out, or add. For me, I'm going to do everything I can to take a larger position in this company before it moves. I have not made one penny yet in this stock, but I'm of the belief that Dexter is going to see to it that we all do very well. I'm overloaded in LBWR, and want to take on more. I know this is not good policy most of the time, but if I want a position that will really make a difference in my portfolio, and Labwire is my super star. I always believed that it's best to put your best player out there, and see if it strikes out, or hits the homerun...................batter up!