Global Digital Solutions Inc (OTCMKTS:GDSI)’s CEO, William J. Delgado, has written a letter to shareholders, providing an update on the recently initiated litigation against the company, by the SEC. Mr. Delgado began his letter by clarifying that the civil action makes the company liable in the litigation, only as an employer of the two former officers. He also reaffirmed that no other employees of the company have been named in the filing. The CEO also assured his shareholders that he would keep them updated on the matter, as much as the law would allow it.
In addition to this, Mr. Delgado also provided an update about the company’s business. He referred to an earlier letter, issued on May 15, stating that the company has been cleaning up its balance sheet and is diligently working to become current with its filings, as was stated earlier, but it would not be able to provide any specifics before September. Moreover, GDSI had been reviewing its strategic alternatives, including acquisitions. Mr. Delgado stated that the management had made significant progress in this regard, but could not provide details for strategic and legal reasons.
Following the litigation from the SEC, Global Digital is also under investigation by several law firms, on behalf of buyers of its securities. The investigation is looking at potential claims, which could be filed on behalf of the shareholders. As such, shareholders of the company are being asked to contact these law firms, in order to get details about their rights, on this matter.
The SEC’s litigation focuses on three press releases, made by GDSI, between October 2013 and March 2014. It accuses the former CEO, Richard J. Sullivan, and former CFO, David A. Loppert, of issuing false and misleading press releases and revenue guidance, during this period. The company had never been a budding leader in the manufacture of cyber arms, as had been presented at the time, neither was its revenue projection achievable at the time.
Global Digital Solutions Inc (OTCMKTS:GDSI) closed at a share price of $0.001, at the end of the August 17 trading session.
Life Clips Inc (OTCMKTS:LCLP) Announces Plans To Up-List To NASDAQ
Life Clips Inc (OTCMKTS:LCLP) has announced that it has successfully filed a Form S-1, in order to raise approximately $7.8 million. The company has also revealed that the funds would be used to up-list the stock to NASDAQ. Moreover, the residual cash would be used by the company as working capital. The CEO of LCLP, Bob Gruder, stated that up-listing to a major exchange had always been part of the business plan. He revealed that the management plans to get up-listed sometime between the end of FY2016 and summer of 2017. Mr. Gruder also claimed that Life Clips has been meeting its business goals and the time was right for the move.
The CEO also stated that raising capital could have also been done through a private placement, but the filing of an S-1 was necessary to assure shareholders that LCLP was keeping its promises and gaining their trust. It should be noted here that LCLP has been engaged with an Investment Bank, based in New York. The bank also has a working relationship with RBC Correspondent Services, which could help LCLP up-list.