Update 1: Patents
We recently announced that we are receiving our Radial Vent Heat Pipe patent. This is very different from when we announced our notice of allowance earlier.
The PCT patent applications for the US and Mexico were awarded first time out, without exception. Which is rare. Normally there’s a lot of back and forth – questions and answers, revisions and qualifications – with the examiner.
If you’re lucky enough to ever receive such a notice, count your blessings, but don’t act on it immediately. You don’t rush to pay your fees to get them issued because – understanding patent law — you first make sure that all the other applications for countries you applied to are in process. The momentum you’ve generated needs to keeps rolling so, ideally, all the other countries follow one after the other. Pay your fees too early and everything can stop.
Know this: we’re expecting to receive notices of allowance from at least another six countries.
Update 2: Increasing the number of authorized shares
The company has filed a definitive 14C to increase our stock issuance capabilities along with a 14C for a reverse split.
Why did the company do both?
First, the company filed a 14C for a 15:1 reverse split, but that takes both SEC and FINRA review and approval. The SEC approved this 10 days after it was filed. FINRA, on the other hand, can take a lot of time and has chosen to do so. So, we have continued and will continue to work to get this done.
Rather than put all our eggs in the FINRA basket, we chose to file for an increase in the number of authorized shares which does not require FINRA approval. The allowance increase was sent to the SEC for review and comment. After waiting the required 10 days, if the SEC has no comments, the company may file a definitive 14C. No comments came, so we filed the definitive and notice was sent out to all shareholders of record.
Both of the 14C’s were done for the benefit our company, its investors and our shareholders. The company, by taking these actions can ensure that we will have stock (our current and only currency) to run the company and ensure funding, so we can deliver on revenue. One way or the other we will have the necessary shares available. Our preference is for the reverse split, but this way, we have a realistic alternative.
In the meantime, as a consequence of filing for the reverse split, FINRA put a “chill” on our stock, so it is harder to trade using the DTC services to process and settle/buy or sell our securities.
How long will the chill be in effect? There’s an appeal to be heard and ruled upon. Our guess is that it will be off by the end of March if not sooner. Whatever the case, neither, FINRA nor the DTC have an obligation to inform our company or our transfer agent.
Our company has been through a lot as a start-up with numerous delays caused from litigation and lack of funding. This has caused many start/stops to finalizing product, pre-production etc.
The litigation with both Peak and Spirit Bear are behind us. In fact, Peak was finalized right at the end of 2016. By judge’s order, we held a meeting with Peak who also met separately with our Independent Directors’ Committee in New York. As shareholders or investors, please take note, both suits were dismissed with prejudice and both are a matter of public record.
Remember, you can send comments and questions into the company via our website. This way you can get accurate answers and not the rumor, innuendo or otherwise fake news you get in chat rooms!