Tuesday, June 27, 2017

Inconceivable!

From Meridian's May 6, 2016 letter to Cyanotech's board of directors:
"The Chairman [Michael Arlen Davis] has elected to make his filings on Schedule 13G rather than Schedule 13D. This is extremely odd - the Chairman has been on Cyanotech's board of directors since the time of his first filing in 2002 and he has served as chairman of the board since 2011. Anyone familiar with SEC reporting requirements, whether counsel to Cyanotech or one of the parties that has assisted the Chairman with the management of his many foundations and trusts, would/should have told the Chairman that he has been filing on the wrong form. Meridian believes it inconceivable that the Chairman made filings over 14 years without becoming aware of the error. Accordingly, it seems likely that the Chairman knew or was told he was filing on the wrong form, but continued using Schedule 13G as part of an effort to minimize public disclosure and scrutiny."