Archive for May, 2016
JRJR Networks filed an NT 10Q after the market closed yesterday, giving the required statutory notice of its intent to delay filing its financial statements for the first quarter of 2016. The filing indicated that the company did not expect to file in the next five days. Additionally, there was a filing yesterday that indicated JRJR director Senator Kay Bailey Hutchinson had rescinded the JRJR stock grant from February. In the context of the company’s continued delays in filing its 10k for 2015 and its failure to provide shareholders any explanation for this director filing for the stock grant to be rescinded, it is difficult to see either of these occurrences in a positive light
We have previously lamented JRJR’s failure to communicate with shareholders. May 16, 2016 was a very important day given it was the deadline for filing first quarter financials, it was the deadline for filing the company’s compliance plan that will allow them to retain an NYSE Mkt listing, it was a day where a long tenured director filed to rescind a 94,000 share stock grant given less than 3 months ago and it was a day where the company would have to issue an additional 50,000 shares to lender Dominion Capital for going another 10 days past the 10k filing deadline. Any one of these four occurrences would usually result in some explanation being offered and the four of them together would usually result in a company taking steps to explain to shareholders why things appear to be in such disarray. As of one hour after the market opened this morning that has not occurred.
“Egregious” is the word that comes to mind to describe JRJR’s shareholder communication practices. It is an understatement to say that they must improve if they hope to achieve the company’s long term goals and it is difficult to imagine any significant shareholder value being created here until there is demonstrable change. While many Groove participants have understandably reduced their JRJR holdings significantly or completely liquidated, we know there are some who continue to hold shares and we hope that the company will take steps to keep its NYSE Mkt listing and adopt better shareholder communication practices in the near future.