I have always known this to be true, but never could remember the rules governing that area of promotion, just that it was an area that insiders, and management had to tread very carefully around. Doing some research today, for another company, and I came across this, my favorite hobby horse in regards to SLI. Now that the waters are "frothing" up, and SLI shareholders might be casting about to see what options they have, and which way the wind is blowing with regards to their investment (read MONEY), perhaps, with less a jaundiced eye, you might consider the circumstances that enticed you into buying into this "pot'o gold" dream.
These are the regulations/rules set out by the TSX in regards to promotion.
. The Promotional Role
1.1 Some promotional activities are aimed purely at keeping an Issuer’s Shareholders informed about the Issuer. A Promoter can provide investors with previously disclosed factual information concerning the Issuer, or with copies of material that has been filed with regulatory authorities, or prepared by registered brokers or investment dealers, or published in newspapers, magazines or journals. It is appropriate for the Issuer to bear the costs of these services, provided the costs are reasonable and in proper proportion to the financial resources and level of business activity of the Issuer.
1.2 However, promotional activities must not extend to disclosing previously undisclosed Material Information about an Issuer, as this may attract civil or quasi-criminal liability for “tipping” under the insider trading provisions of applicable Securities Laws. Similarly, activities that extend beyond providing factual information and into the area of analyzing that information or providing opinions as to future performance of the Issuer or its securities, particularly if these activities are systematic, could be construed as advising in securities, which requires registration under applicable Securities Laws. This does not mean that directors and senior officers cannot publicly analyze factual information concerning the Issuer’s affairs. However, an individual engaged in promotional activities may require registration if the individual provides an analysis or opinion to members of the public who are being encouraged to buy or sell the Issuer’s securities. See Policy 3.1 - Directors, Officers, Other Insiders & Personnel and Corporate Governance with respect to unacceptable trading.
1.3 Promotional activities may limit the availability of exemptions from Resale Restrictions under the Securities Laws, since several of these exemptions require that “no unusual effort is made to prepare the market or create a demand for the security”.
1.4 The Exchange is of the view that it is very rare for an Issuer to have a Promoter without the Issuer’s approval, acquiescence or knowledge. An Issuer that has a Promoter, or permits an Insider or an Insider’s Associate to act as a Promoter or in any way engage a Promoter, must be fully informed about the activities of the Promoter. The disclosure requirements to be met by an Issuer with respect to its Promoters are set out in section 3 below.
Can anyone say "B&B!?