UPDATE ON WORLD INFORMATION TECHNOLGY (OTCBB:WRLT)
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WRLT HAS COMMITTED MULTIPLE SEC VIOLATIONS.
Where are the 8-Ks?
A company is required to file a form 8-k within a certain period of time for all material events to the company. They are delinquent on all of these filings:
Three acquisitions "announced" over 5 months ago- 8-K due for each within 15 calendar days of transaction
Resignation of Auditor- 8-K due within 5 business days of event
Resignation of Chief Financial Officer- 5 days
Resignation of Chief Executive Officer- 5 days
http://www.sec.gov/rules/proposed/33-8106.htm#P58_6328
More significantly, the acquisition of 80.75% of WRLT's supposedly "great business" in Taiwan, from which it derives virtually all its gross and net revenues, was reported in a 3/17/03 8-K with the following language:
"Closing shall occur when the Amended Form 8-K, which includes audited financials is filed or such later time mutually agreed upon by both parties, once all conditions precedent have been satisfied."
To date, no amending 8-K, specifically the audit of the acquired company, was ever filed. Nevertheless, WRLT has subsequently filed quarterly 10QSB’s for the June and September quarters, stating revenues of approximately $6 million for the two periods.
So we have to ask:
Is the acquisition still pending or has it been closed?
If it is still pending, how can the company be reporting revenues from the acquired entity? If it is closed, where is the 8-K and the audit?
Which is it, WRLT? But more troubling, who do we ask?
The next milestone will be an audited 10-K, required within 15 days of the March 31, 2004 deadline. WRLT must file this report or lose its OTCBB listing. The audit for the prior year of World Information would also be required.
tick tock tick tock tick tock
Who is making the filings?
This company has gotten to the point that when the CFO resigned from the company, he had to put it in a press release himself.
http://biz.yahoo.com/prnews/040128/law130_1.html
This alone creates a rule FD disclosure obligation for the company
FAKE FINANCING CONTINUES
According to the company and to CEO Cast, the funding for all future acquisitions is going to be provided by Aurora Two. Aurora Two is no more in a position to provide the financing than we would at Stocklemon. Who is Aurora Two?
The contact person or Aurora 2 is John Mattera.
Look at what Mattera did to Human Biosystems
On December 10, 2001, we filed a complaint entitled HyperBaric v. John A.
Mattera, in the United States District Court, Northern Division, Case No.
C01-21142. This is an action against John A. Mattera ("Mattera") for breach of
contract; breach of the implied covenant of good faith and fair dealing; fraud;
securities fraud; and constructive trust in connection with a stock purchase
agreement that we entered into with Mattera in April 2001. Pursuant to the
agreement, Mattera was to wire transfer the sum of $104,000 within 72 hours of
receipt of 400,000 free trading shares of our stock to be deposited with a
clearing agent designated by Mattera. Mattera failed to pay and refused to pay
for the shares of stock; however, the shares were cleared and released to
by the clearing agent without confirmation that payment had been
received by us The complaint was served on Mattera in Florida on December 28, 2001, but to date no response has been filed. A judgment was entered against Mattera in the amount of $117,447.28 on
November 15, 2002, and we are attempting to execute on this judgment; however,
there can be no assurance that we will be able to recover any of this amount
Aurora was also supposed to fund (OTC:LATI) according. But look what happened to the financing as stated in a filing dated 1/29/04.
On November 19, 2003, we negotiated and entered into a Regulation S Stock Purchase Agreement (“Aurora Agreement”) with Aurora Two
Ltd. (“Aurora”) in which Aurora agreed to purchase up to 12,000,000
shares of our common stock in a foreign transaction to be valued based
on market prices.
After several extensions and unsuccessful attempts to secure funding, no
funding was obtained and the Aurora Agreement set forth above was
terminated on or about January 28, 2004. As a result of the company’s
inability to arrange for long term financing, all agreements have been
terminated.
Investor Relations
The new investor relations contact for World Information Technology is Shyng-Jiann Lin. Dr. Lin is not only the investor relations contact, he is also on the board of directors. Who is this man?
Dr. Lin is a veterinarian who had his license revoked by the State of California for FRAUD AND DECEPTION, among other violations.
http://www.vmb.ca.gov/enforcement/discactn2.htm
A recent phone call to Dr. Lin shows us that he does not know about SEC regulation. Dr. Lin makes it clear that this week WRLT is going to announce an acquisition of another company in China. Does he not know of Rule 10b5? Anyways, who cares what WRLT acquires? As long as the company refuses to file 8k's, they can be acquiring a lemonade stand in Beijing.
NEW AUDITORS
We could speak volumes about the alleged new auditors. Yet, they have not filed an 8k announcing that they are the new auditors, therefore, we have chosen not to even engage in that discussion. If and when an 8k is filed, Stocklemon will address the integrity of the new auditing firm.
Conclusion
World Information Technology has not filed any 13D’s of beneficial ownership as well as no 8ks (at least they are consistent). Stocklemon is of the belief that they will likely have insurmountable obstacles in filing a 10-K. It is the opinion of Stocklemon that this company is a poster child for stock promotion and we hope that this activity will soon come to a halt by either the company or the regulators.