8000inc (EIGH.pk) stock audit results identify discrepancies.

Oct 06, 2010, 11:06 ET from 8000inc

Preliminary results reveal short positions in 8000inc (EIGH.pk).

MANASSAS, VA, Oct 6 /PRNewswire-FirstCall/ - The board of 8000inc would like to apologize for the delay in issuing this investor update. As stated, the Company has undertaken a stock audit of its common shares and the following has been revealed in the preliminary stages. 

The company's transfer agent verified all issued regular (common) stock, certifying that all 138,824,700 regular shares were accounted for in the register, with 5,000,000 restricted shares out of a total of 143,824,700 issued common shares.  The report also verified that between the dates of August 22 and September 30, the number of shares bought and held was 51,839,151, with a trading volume for the period of 63,185,590 shares. 

Subsequent to the report, the company undertook a sample audit of 545 accounts, correlated to their clearing or brokerage firm. These accounts showed a current held position of 82,745,008 shares of 8000inc common stock. Further assessment identified significant short positions, (>10%), within this sample. Of the total number of retail shares that they purchased, 29,581,931 common 8000inc shares, bought and held in trading accounts, are yet to be allocated to the various market makers and or brokerages. These figures were measured against the absolute certified stock report for 8000inc prepared by the company's transfer agent. Notably, the short positions identified are attributable to less than 65% of the recorded retail share purchases of 8000inc common stock of this sample cohort and do not include stock purchases by the market at large. 

8000inc are confident that as an OTC.PK corporation, non-reporting and with the dividend fast approaching, a resolution to these findings is imminent.  The Board has and will continue taking appropriate advice in this matter. It is of paramount importance for the Board of 8000inc to safeguard our shareholders and their investment.   Further statements will be issued immediately to our shareholders and the market as more information is reported.  

This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. The words "estimate," "project," "intends," "expects," "believes," and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbour" provisions of the Private Securities Litigation Reform Act of 1995. For a more complete description of these and other risk factors that may affect the future performance of 8000 Inc. see "Risk Factors" in the Company's Annual Report on Form 10-KSB and its other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made and the Company undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.

SOURCE 8000inc