I would like to know why this security is being al
Post# of 3935
(Total Views: 981)
Posted On: 12/09/2020 9:10:27 AM
I would like to know why this security is being allowed to trade in light of the following circumstances:
1. The company has not filed financial statements in over a year. For this reason, many broker-dealers will not allow buy transactions. However, this has not stopped highly unusual trading activity over the course of the last few months. On numerous days, there has been trading volume that is dramatically larger than the daily average – all without any news – that seems to keep the price stabilized over its minimum trading-price-for-listing of .01. It seems to me that this situation proposes a serious opportunity for illegal activity.
2. The last time anyone heard from the owner/CEO/only Board member was Nov. 20th, 2019. Since then, he has closed all operations and executed a reverse stock-split without any approval from shareholders. The store closures were completed after years of repeatedly making false expansion declarations, including bringing on a celebrity brand ambassador (Jilian Michaels) that went on TV and declared they were opening six new stores by the end of 2018 (they’ve opened none and closed two, leaving one remaining location that has been closed since March of 2020. They also used that celebrity brand ambassador’s likeness in their last crowd-funding campaign while knowing she was no longer associated with the company). In addition, they shut down their company website over nine months ago. What exactly are the rules around company announcements and communication with shareholders? Because again, management has ceased communicating with shareholders and when they do, it appears to be information that is not true.
3. How are they allowed not to file financial statements? Their last quarterly filing (9/29/2019) said they had $3.5M in liabilities and less than $5k in cash, with a going concern label that said they were supposed to be out of money over a year ago. They’ve since ceased all operations and have no revenue, but have not declared bankruptcy and have given no explanation as to how they are handling their creditors. How are they allowed to not disclose any of this, especially with no halt in trading? This is material information that must be disclosed. I suspect, in light of the reverse stock-split, that there is some sort of agreement in place that would have a materially beneficial affect on the stock price that I am not allowed to take advantage of because of the company’s failure to file financial statements. If they can afford to avoid bankruptcy, they can afford to file their financial statements and update their shareholders.
I have filed multiple complaints against this company over the years with the SEC and every time the SEC has ignored me. At some point the SEC is going to have to explain what they were doing while all this was going on because it is definitely not normal and you (the SEC) have definitely been made aware of it.
1. The company has not filed financial statements in over a year. For this reason, many broker-dealers will not allow buy transactions. However, this has not stopped highly unusual trading activity over the course of the last few months. On numerous days, there has been trading volume that is dramatically larger than the daily average – all without any news – that seems to keep the price stabilized over its minimum trading-price-for-listing of .01. It seems to me that this situation proposes a serious opportunity for illegal activity.
2. The last time anyone heard from the owner/CEO/only Board member was Nov. 20th, 2019. Since then, he has closed all operations and executed a reverse stock-split without any approval from shareholders. The store closures were completed after years of repeatedly making false expansion declarations, including bringing on a celebrity brand ambassador (Jilian Michaels) that went on TV and declared they were opening six new stores by the end of 2018 (they’ve opened none and closed two, leaving one remaining location that has been closed since March of 2020. They also used that celebrity brand ambassador’s likeness in their last crowd-funding campaign while knowing she was no longer associated with the company). In addition, they shut down their company website over nine months ago. What exactly are the rules around company announcements and communication with shareholders? Because again, management has ceased communicating with shareholders and when they do, it appears to be information that is not true.
3. How are they allowed not to file financial statements? Their last quarterly filing (9/29/2019) said they had $3.5M in liabilities and less than $5k in cash, with a going concern label that said they were supposed to be out of money over a year ago. They’ve since ceased all operations and have no revenue, but have not declared bankruptcy and have given no explanation as to how they are handling their creditors. How are they allowed to not disclose any of this, especially with no halt in trading? This is material information that must be disclosed. I suspect, in light of the reverse stock-split, that there is some sort of agreement in place that would have a materially beneficial affect on the stock price that I am not allowed to take advantage of because of the company’s failure to file financial statements. If they can afford to avoid bankruptcy, they can afford to file their financial statements and update their shareholders.
I have filed multiple complaints against this company over the years with the SEC and every time the SEC has ignored me. At some point the SEC is going to have to explain what they were doing while all this was going on because it is definitely not normal and you (the SEC) have definitely been made aware of it.
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