NEW YORK, July 18, 2017 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against Axiom Holdings, Inc. ("Axiom" or the "Company") (OTCMKT:AIOM) securities and certain of its officers, on behalf of a class who purchased Axiom securities between October 14, 2016 and June 19 2017, inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/aiom .
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1933.
On October 10, 2016, Axiom Holdings, Inc. entered a Share Exchange Agreement (the “Agreement”) with CJC Holdings, Ltd. (and its subsidiaries, “CJC”), a Hong Kong corporation, and the two shareholders of CJC, Hu Dengyang and Yang Chuan (collectively, the “CJC Shareholders”). CJC and its subsidiaries run multiple hydropower electric generation stations and operate two hotels in China.
Pursuant to the Agreement, Axiom was to procure all of CJC’s issued and outstanding shares from the CJC Shareholders in exchange for the issuance of 200,000,000 shares of Axiom common stock.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) Axiom, lacked control over the merger process sufficient to ensure that the Agreement with CJC would be completed; (2) as a result, the Agreement with CJC was never completed; (3) Axiom’s issuance of shares to the CJC Shareholders was thus improper; and (4) consequently, Axiom’s public statements were materially false and misleading at all relevant times.
On June 19, 2017, Axiom revealed that it had identified discrepancies connected to prior news releases following a subpoena from the U.S. Securities and Exchange Commission. Specifically, Axiom disclosed: (1) issues relating to the propriety of Axiom’s December 2016 share exchange with CJC Holdings, Ltd. (“CJC”), under which Axiom acquired all CJC’s outstanding shares; and (2) that the purported Chief Executive Officer of CJC, who signed the share exchange agreement in December 2016, had resigned from that role a month earlier. The next day, Axiom advised investors that “it now appears the merger was never completed” and that it would rescind the shares that were issued to the CJC Shareholders in connection with the merger. Following these revelations, Axiom stock dropped $0.44 per share, or 37.93% over two trading days, to close at $0.72 on June 20, 2017.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site: www.bgandg.com/aiom or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Axiom’s you have until August 21, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact: Bronstein, Gewirtz & Grossman, LLC Peretz Bronstein or Yael Hurwitz 212-697-6484 | info@bgandg.com
