Host America (CAFE): No agreement w/ Wal-Mart; CEO on admin leave
It’s simply amazing that a company could put out such a misleading press release in this day & age. CAFE finally made a statement about their release from July 12 that sent the stock soaring:
Host America Corp. said Wednesday that while it believed there was an oral understanding between itself and Wal-Mart Stores Inc. that Host would begin surveying 10 Wal-Mart stores for the installation of its LightMasterPlus system, there is not, and never has been, a formal, written agreement with the retailer concerning the proposed survey nor is there any agreement for the installation of the light system. The survey was the subject of a July 12 press release that was followed by a significant increase in trading volume in Host’s shares and stock price over the next ten days, the company noted. The Securities and Exchange Commission subsequently began a formal probe of the company and certain of its officers, directors and others and initiated a suspension in the trading of Host’s securities. Host said Chief Executive and President Geoffrey Ramsey has been placed on administrative leave without pay pending the completion of an investigation by a special committee convened by the company. Ramsey has also resigned as chairman of the board. Chief Financial Officer David Murphy has been named acting CEO and president
I feel bad for the people who have been trapped in CAFE for all these weeks. I guess they’ll have some consoloation from the fact that the stock is set to start trading again tomorrow.



















This post has 2 comments
August 31st, 2005
Hey,
Thank you for that update
Hope not too many are trapped in that paper tiger
September 1st, 2005
It just re-opened… down 68% to $4.50. I’m shocked that it’s not trading back in the 2’s