Solicitation On The Internet
As we speak around the world, Companies and Entrepreneurs have information on their websites, either public or private that are breaking the laws. At the same time, there are regulators across the US and globally holding information sessions for legal professionals to prepare their clients for the prosecution that is to come. So what are they prosecuting people for, solicitation of course.
Here is a case study for you to consider:
Case 1: An entrepreneur with mining claims incorporates a company and puts the mining claims into the company stating that it is a mineral exploration company. The company could become public, or could be private, but they decide to build a website with information on the company. Within this web page is the following on a page called Investor Relations:
– How much the exploration will cost
– What they are looking for, and use of expenses
– The amount of money they will need, possibly even raising
*In some cases the website will have documents called Offering Documents, PowerPoint Presentations, Executive Summaries, or Diagrams and graphs.
Through-out the website there may be these documents and discussions about how much money is needed. In some cases there may be disclaimers.
All of the above is acting in the capacity of soliciting funds.
Case 2: It’s the same company, but it is trading on a quotation system like the Pinksheets or NEX. The information on the company is not readily available. The website discusses news events, future of the company, and funds needed to meet the business plan. Again, the documents could be considered a solicitation especially if the website documentation and comments are about the focus of the company that has not been filed in a Super 8K.
Case 3: Your company has a blog, twitter, facebook account, Youtube, Newsletter, Discussion Forum, or social media presence. On the website, the company discusses what they are trying to achieve, how much money they have raised, where the money is going to, and how much money they need to raise. They might discuss the price of a stock, the return on investment or per share value based on market cap, and various other possible discussions around the status of capital structure and financing.
What do all three of these cases have in common? Documents whether they are webpages, files, or emails, its all solicitation, attempt to sell unregistered shares, or shares that may be registered but according to the current information available, is considered “unregistered” due to the definitions of what is required.
As the CEO of a company or CFO you sign-off on the Qs and Ks of your public company, annual and quarterly filings globally, and do not know what is on your website or being published online. Maybe you do, but don’t understand the implications. I suggest you start knowing before it’s too late, hire our company of social media experts, lawyers who have been trained to handle these types of situations, and allow us to AUDIT your INTERNET presence. Contact Ryan@publishknowledge.com.
We will review your internet presence, the information distributed, and implications of the language used towards liabilities to the company and directors. A policy document will be developed for all publications that may reach the internet, and an online marketing strategy will be developed that achieves your goals of exposure without putting you in harm’s way with regulators.
Our consultants have experienced the good and the bad of what happens with online publications and have more practical experience on internet marketing, publishing, and liabilities than any marketing company you will hire. We are the auditors that you will rely on for the internet.