The Company also announced that the Company was contacted Friday, April 22 by the U. S. Attorney’s Office for The Eastern District of Virginia, which is opening an investigation. In addition, the Audit Committee, through its legal counsel, has contacted the Securities and Exchange Commission in connection with the previously disclosed Audit Committee investigation and findings. The Company will cooperate fully in these investigations and any others.
The Company also affirmed that it continues to face a severe liquidity crisis and possible insolvency. There can be no assurances that the Company will have sufficient cash to meet its financial obligations or fund continuing operations. The Office of the Chairman of the Board is authorized to retain a consultant with financial and management restructuring expertise. The Company intends to work with such adviser to reduce costs, conserve cash, and obtain advice regarding restructuring and other alternatives to maximize shareholder value.
I remember several years ago hearing grumbling (unconfirmed by me) that folks at Xybernaut were pumping their stock with misleading press releases and then selling on the bump, but this is looking like much larger chickens coming home to roost.