I've been pondering on their statement about :

" apparent material breakdown in the Company's internal controls, which in management's view are related in part to changes arising over the last approximately six months including a change of the Company's Chief Financial Officer, change of year-end and change of auditors.

The Company is working diligently with its accounting staff and its auditors to address the issues raised by the auditors and anticipates that it will be in a position to file the Required Documents on or before June 26, 2009. "

I find it very ... unsettling considering the situation . 6 months ago that's about the time some Pala people were appointed to the board was'nt it ?

An " apparent material breakdown in the Company's internal controls," can only be related to some numbers not adding up either subsequent to a computer related problem or worse , subject to " manipulation " , and relating this to the changes that occured about six months ago sounds very suspicious .

I admit i don't like the sound of it , for " Management and the Audit Committee concur with the Company's auditors that the Company will be unable to file the Required Documents " seems to point to a problem with the regular auditing procedure and it seems to involve the chief financial officer or other board member ...

Furthermore mentioning that :

" In the interim, the Company will apply to the applicable securities regulatory authorities for a management cease trade order related to the Company's securities to be imposed against some or all of the persons who are or have been directors, officers or insiders of the Company for so long as the Required Documents are not filed.

If granted, a management cease trade order would not generally affect the ability of persons who have not been directors, officers or insiders of the Company to trade the securities of the Company . "

seems to be very close to a " legal procedure " implying a sort of inquiry about malevolence .

I'd rather not thread further on that path but it sounds bad and the timing of it is either very lucky or the opposite , i'm realy not sure but if any " tempering with the numbers happed we might as well find out as fast as possible in the company's and shareholder's interest and i'm glad all of this happens in a situation where shareholder's right are still applicable , i believe it favors transparency .

We better keep our eyes and ears wide open and our moth ready to decry foul play

Regards Tectol