SEC Suspends Trading in 55 Abandoned Issuers in Sweeping Order
Today, the Securities and Exchange Commission (the “SEC”) suspended trading in 55 publicly traded penny stock companies because of public interest concerns.
According to the Order, all 55 issuers have stopped making public disclosures putting their operating status into question.
Many of the stocks were formally involved in pump & dump schemes and other types of securities fraud. Some even had insiders charged by the SEC and criminally Indicted. Still, the one thing they all had in common is that none of the companies have made any public disclosures through OTC Markets for a considerable time.
After an effort to contact each of the companies, the SEC determined that they were no longer operating and posed a public concern because of the potential for market manipulation via social media and online trading groups.
The 55 issuers suspended were:
1. American Community Newspapers, Inc. 2. Be Active Holdings, Inc. 3. Biomimix, Inc. 4. BroadWebAsia, Inc. 5. CapitalSouth Bancorp 6. Cell Tech International Incorporated 7. Cloudward, Inc. 8. Conihasset Capital Partners, Inc. 9. East Side Financial, Inc. 10. Eastern Light Capital, Inc. 11. Enable Holdings, Inc. 12. Encompass Energy Services, Inc. 13. Environmental Infrastructure Holdings Corp. 14. EquiFin, Inc. 15. FFP Partners, L.P. 16. General DataComm Industries, Inc. 17. Glen Rose Petroleum Corp. 18. Global Agricultural Holdings, Inc. 19. Holographic Storage Ltd. 20. Hot Mama’s Foods, Inc. 21. iMing Corp. 22. KM Wedding Events Management, Inc. 23. Madison Ave Media, Inc. 24. Message Processing International, Inc. 25. Metro Global Media, Inc. 26. Mopals.com, Inc. 27. Multi-Media Tutorial Services, Inc. 28. My Screen Mobile, Inc. 29. Nemo Motors Corp 30. Nutroganics, Inc. 31. Oak Tree Educational Partners, Inc. 32. Odimo Incorporated 33. Omnimmune Holdings, Inc. 34. OptimumCare Corp. 35. Oracle Healthcare Acquisition Corp. 36. Orthometrix, Inc. 37. Oryx Technology Corp. 38. Osage Exploration and Development, Inc. 39. Panache Beverage Inc. 40. Petrominerals Corp. 41. Pinnacle Bank of Oregon (Beaverton) 42. PostRock Energy Corp 43. Princeton National Bancorp, Inc. 44. Reliant Financial Service Corp. 45. Seawright Holdings, Inc. 46. Seilon, Inc. 47. Solar Gold Ltd. 48. Strategic Internet Investments, Inc. 49. Sycamore Ventures, Inc. 50. Teletouch Communications, Inc. 51. TransCoastal Corporation 52. Trimol Group, Inc. 53. VIA Pharmaceuticals, Inc. 54. Voiceserve, Inc. 55. Winston Pharmaceuticals, Inc.
Earlier this year, the SEC targeted dozens of similarly abandoned companies after becoming the subject of massive social media manipulation.
The next stop for the 55 issuers will be the Grey Market after 10 trading sessions have passed.
The move comes with the Rule 15c-211 compliance deadline of September 30, 2021, just around the corner.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.