DEERFIELD BEACH, Fla. and NAPOLEONVILLE, La., Oct. 18, 2007 (PRIME NEWSWIRE) -- Red Reef Laboratories International, Inc. (Pink Sheets:RRLB), a scientific research, development, and marketing group focused on commercializing a variety of chemical and biological products, announced today the company has gathered its files, which we believe make a compelling case against the traders who are short selling RRLB, and provided them to the U.S. Attorney on behalf of our stockholders. As part of our fiduciary responsibility to our shareholders, we feel duty bound to do our part to encourage and support a fair market for RRLB stockholders.
In December, 2003 criminal charges were filed against the Badian brothers, (U.S. v Badian and Badian) alleging naked short selling. This case is still pending but served as the impetus for Red Reef to take action.
You don't have to be an experienced trader or investigator to conclude that trading patterns in the shares of RRLB indicate prejudice and manipulation, negating supply and demand. An experienced trader or investor would conclude that the company's market is controlled by a substantial short interest.
The trading techniques Red Reef finds objectionable are those that intentionally control the range in which shares will trade and the company is going on record once more to condemn this despicable practice. Hopefully this will help in some way to close delivery and payment loopholes and to restore ethical values in the investment community.
Our shareholders and the investing public deserve an even playing field when they buy or sell shares in any public company.
All investors would do well to demand physical delivery of the shares they purchase or have on deposit with their brokers, especially in OTC Pink Sheet companies. This would tend to reduce the available shares that brokers can borrow and possibly force short sellers to cover, or buy for delivery, shares previously sold short.
All too often trades having a total dollar value of as little as $5 are posted and cause a 10% or more decline in price. All too often thousands of dollars of buying have no effect on the upside. How many shareholders are there who own odd lots of 50 or 60 shares? Very few, if any, and it is doubtful that they would be inclined to sell when the commission might be more than the value of the trade. Every market maker should have an obligation to his employer and a moral obligation to the public to maintain an honest and orderly market.
The true extent of this immoral practice is far greater than one could imagine. For the sake of America's economy, as well as all investors, we must call for justice and put an end to the grip that short sellers have on our public markets.
To gain further insight on the extent of this problem via the internet, go to: http://www.rgm.com/articles/time.html
Red Reef has developed a Strategy for Success which we believe will discourage oppressive trading techniques, designed to control the share value in our publicly traded shares. Nothing succeeds like success.
About Red Reef Laboratories International, Inc.:
Red Reef Laboratories International, Inc. is a diversified scientific research, development, and marketing group established to assemble, develop, commercialize and bring to market a variety of chemical and biological products, utilizing advanced surfactant technology and increasingly "green" compounds. These series of products are specifically designed for biocidal and virucidal applications. For more information, please visit the Company's web site at www.redreef.biz.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. The Company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include, but are not limited to, the risk factors noted in the Company's filings with the United States Securities and Exchange Commission, such as the rapidly changing nature of technology, evolving industry standards and frequent introductions of new products, services and enhancements by competitors; the competitive nature of the markets for the Company's products and services; the Company's ability to gain market acceptance for its products and services; the Company's ability to fund its operational growth; the Company's ability to attract and retain skilled personnel; the Company's ability to diversify its revenue streams and customer concentrations; and the Company's reliance on third-party suppliers.