Here's a little story for you all about FINRA and
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Posted On: 02/25/2022 3:49:53 PM
Here's a little story for you all about FINRA and a ticker change.
Years ago, 2016 or 2017, back when pot stocks were still hot, I traded a company called UA Multimedia (UAMM) that had produced Vietnamese movies but hired a new CEO and they were moving into the Marijuana space as a tech provider. They disclosed that they were changing their name to Cannaxa and had applied to FINRA for the name and ticker change.
A 2-3 months went by and the company announced they had to change their name back to UA Multimedia and that FINRA denied their application. The reason given was that some financial record from way back, like 10-12 years before the application to FINRA, couldn't be located and FINRA wouldn't approve it with incomplete records. So UAMM carried on with the old name and is still in business to this day, though now they do crypto and blockchain stuff. Sometimes prior ownerships failings have nothing to do with the current state of a company.
We don't know if FINRA denied EGOC or not. It's certainly possible given that this shell had been abandoned for many years that maybe there was something incomplete or wrong that would have led to a denial. The statement in the disclosure this week about preferred shares not being turned in is interesting and I would like more clarity on that. The way it is worded seems like it is unrelated to FINRA but I'm not sure.
The point is, not getting a ticker changed is not the end of the world and has no effect on a company's ability to do business and move forward. I'm sure it is disappointing to them as it is to us. A ticker change really is important more for branding and identity purposes but there is much they can do to work around that. Using Energy 1 as an umbrella for subsidiaries such as China Yicheng Technology, Shanghai Cultural Communication, etc. is an option.
Note that I am not giving any recommendation for UAMM. I haven't owned any shares there for a long time. I am just using that history as an example of moving on.
Years ago, 2016 or 2017, back when pot stocks were still hot, I traded a company called UA Multimedia (UAMM) that had produced Vietnamese movies but hired a new CEO and they were moving into the Marijuana space as a tech provider. They disclosed that they were changing their name to Cannaxa and had applied to FINRA for the name and ticker change.
A 2-3 months went by and the company announced they had to change their name back to UA Multimedia and that FINRA denied their application. The reason given was that some financial record from way back, like 10-12 years before the application to FINRA, couldn't be located and FINRA wouldn't approve it with incomplete records. So UAMM carried on with the old name and is still in business to this day, though now they do crypto and blockchain stuff. Sometimes prior ownerships failings have nothing to do with the current state of a company.
We don't know if FINRA denied EGOC or not. It's certainly possible given that this shell had been abandoned for many years that maybe there was something incomplete or wrong that would have led to a denial. The statement in the disclosure this week about preferred shares not being turned in is interesting and I would like more clarity on that. The way it is worded seems like it is unrelated to FINRA but I'm not sure.
The point is, not getting a ticker changed is not the end of the world and has no effect on a company's ability to do business and move forward. I'm sure it is disappointing to them as it is to us. A ticker change really is important more for branding and identity purposes but there is much they can do to work around that. Using Energy 1 as an umbrella for subsidiaries such as China Yicheng Technology, Shanghai Cultural Communication, etc. is an option.
Note that I am not giving any recommendation for UAMM. I haven't owned any shares there for a long time. I am just using that history as an example of moving on.
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