Phillips not willing to take a diveRealm Group and its president Glen Edward Phillips face suit from a shareholder who complains he lost most of his $100,000 private-placement investment after the stock went down. In a statement of claim filed Thursday in the Supreme Court of British Columbia, Gustavo Sedler and his holding company, Keytech Trading, seek the return of his $100,000 investment in the $1-a-share financing, which closed in December.
The allegations have not been proven in court and no statements of defence have yet been filed. Mr. Phillips told Stockwatch that while Mr. Sedler has no legal recourse, he is confident the stock will recover. "I hope to make Gustavo proud to be a Realm shareholder one day," he says. Realm shares, which peaked at $2.50 on March 3, 2000, bottomed out at 10 cents three weeks ago and currently trade at 12 cents.
In the suit, Vancouver lawyer Murray Madryga of Cran Madryga claims Mr. Phillips "was aggressively selling shares into the market" between September and February, forcing the stock price down. Mr. Phillips denies the allegation, saying, "I bought more than I sold." "This is not the old-style VSE deal where the insiders sell off their shares."
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