On 7/1/2014 we published our article on WSTI, part of our findings were that:
The SEC sends letters regarding disclosures that investors can review by observing “upload” filings on a company’s SEC page. The SEC has been sending WSTI (pre and post-reverse merger) letters asking for clarity on disclosures. There have been two relevant SEC “upload” letters after WSTI’s reverse merger:
- September 16, 2013 – SEC requested answers to 26 questions
- October 28, 2013 – SEC requested answers to 11 questions
A common characteristic that exists in the stories of companies that we believe are pump and dumps are attempts by management to portray a sense of legitimacy by associating the company with recognizable names/enterprises.
Sales, Marketing, and Distribution
WindStream is planning to outsource both the installation as well as ongoing maintenance of installations as required. As a result of the interest in renewable energy solutions, we believe that there is a ready network of wind power installer and maintenance providers who can accommodate the Company’s installation requirements on an ad hoc basis. As the Company continues to scale, we will explore the cost benefit of creating an “in house” resource to manage installations and maintenance.
In the SEC letter on 10/25/2013 , the SEC issued the following statement:
“We note your response to comment 12 in our letter dated September 13, 2013 and your response that the amendment has been revised to remove the reference pictures. We also note that your amendment includes a picture of IKEA. Please discuss whether you have any agreements with such company or revise to remove the picture.”
Since this SEC inquiry on 10/25/2013, the company has filed multiple 8k/As relating to its reverse merger:
- 11/1/2013 8k/a pg 12
- 12/6/2013 8k/a pg 12
Yet it appears that none of them offered an explanation or commentary on whether or not WSTI has any agreement or relationship with IKEA. Yes, the picture is still present in these filings. Furthermore, there have been no additional amendments filed since 12/6/2013 that pertain to the reverse merger .