DEERFIELD BEACH, Fla., Feb. 21, 2007 (PRIME NEWSWIRE) -- Red Reef Laboratories International, Inc.'s (Pink Sheets:RRLB) Executive Vice President Peter Versace says, "Everyone is entitled to an opinion. But enough is enough!" Following is a letter Red Reef Labs sent to the Chairman and Commissioners of The Securities and Exchange Commission today in an effort to help establish an orderly market in the shares of Red Reef Labs and all emerging growth companies.
February 21, 2007
Chairman Christopher Cox
SEC Headquarters
100 F Street, NE
Washington, DC 20549
Dear Chairman Cox,
Everyone, even remotely aware of equity markets and small cap trading
has heard of companies that have fallen victim to illegal, aggressive
short selling. Investors, who are willing to accept measured risk for
the potential of greater returns, are entitled to a level playing
field. Hundreds of investors and entrepreneurs are adversely affected
by short-sellers whose profits depend on their efforts to destroy a
company's ability to access equity capital. Constant, unrelenting
pressure on publicly traded shares makes it unattractive to potential
investors, seeking ground floor opportunities. This culture of greed,
abetted by little or no consequences to their illegal and immoral
behavior, hurts all Americans by discouraging new companies from
"going public", and equity players from making capital available to
start-ups and emerging growth companies. These companies are the
backbone of the American economy and should succeed or fail on their
own merit or of their own weight.
We strongly recommend that existing rules be enforced consistently.
Consideration should be given to returning to the three day settlement
procedures on all "penny stocks". Delivery versus payment would
virtually eliminate short selling as a means of severely harming small
companies for profit.
We urge the commission to consider our suggestions and take what ever
actions at your disposal to end short selling in violation of your
rules, once and for all.
Yours Truly,
/signed/
-----------------------
Dr. Claus Wagner Bartak
President and Chairman
Cc: Commissioner Paul S. Atkins, Commissioner Roel C. Campos,
Commissioner Annette L. Nazareth, Commissioner Kathleen L. Casey,
Division of Market Regulation, Division of Enforcement
Ultimately, good investor relations and earnings combine to overcome the 'forces of evil.' Red Reef Labs, keenly aware of the dynamics in play, will endure. Our plans for growth and expansion are clear and we are more than satisfied with our progress to date. Fortunately we have found creative ways to reach our objectives and though inconvenienced by market activity, are not the least bit dissuaded. We're in for the long haul. Any and all devices or tools available to discourage short selling are being considered and implemented. More importantly, we're building and growing!
Dr. Claus Wagner-Bartak added, "We are grateful and appreciative of our loyal family of shareholders and will continue to strive for the objectives you anticipated with your investment in Red Reef Labs. Though we are not yet a 'reporting company,' we have elected to have our financials audited and available to our shareholders via e-mail, on request. We are always available and glad to hear from our shareholders and potential investors."
Forward-Looking Statements
Certain statements in this news release may contain 'forward-looking' information within the meaning of the Federal securities laws. All statements, other than statements of fact, included in this release may include forward-looking statements that may involve risks and uncertainties. There can be no assurance that such statements will be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances or to reflect unanticipated events or developments.