The biggest lie was those millions of dollars worth of contracts that never saw the light of day. They even went so far as to say there would be a cash lag of 6 months due to installation and recognition of revenue. Nowhere was there mention of a trial period or that these contracts rely on a successful trial.
Further still, when all these trials fell through, there should have been continuous disclosure reflecting this as the market can only assume from what it has been told that revenue from these contracts were a formality in future periods unless notified otherwise.
Now she wipes her hands clean by saying she didn't "force" anyone to by shares. No, she didn't, but she misled people into buying shares on false premises and failure to update the market with material information that would be expected to affect the share price.
Merchants definitely got hoodwinked. Late last year in one of their client newsletters they said the 1PG business model had merit. Now they say the company should never have listed and are trying to make amends for a dud investment. They are looking at investing the remaining money in tech. I think people will be very wary about investing in this stock once it comes out of its trading halt.
Joanna definitely faked it and couldn't make it.
1PG Price at posting:
16.5¢ Sentiment: None Disclosure: Not Held
