SEC Suspends Penny Stock Issuers-Posted by Brenda Hamilton

SEC Suspends Penny Stock Issuers-Posted by Brenda Hamilton. The SEC has suspended four penny stock issuers who failed to comply…

On January 9, 2018, the U.S. Securities and Exchange Commission (“SEC”) announced the temporary suspension of trading in the securities of three penny stock issuers:

• Blacksands Petroleum, Inc. (BSPE),
• China Education Alliance, Inc. (CEAI),
• DoMark International, Inc. (DOMK), and
• East Coast Diversified Corp. (ECDC)

The SEC suspended trading in the securities of the foregoing penny stock issuers due to a lack of current and accurate information about the companies. Each issuer had not filed certain periodic reports with the Commission. This order was entered pursuant to Section 12(k) of the Securities Exchange Act of 1934 (“Exchange Act”). The SEC cautions brokers, dealers, shareholders and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by these companies.

All three penny stock issuers were quoted by the OTC Markets interdealer link. Each of the issuers had undergone name changes and engaged in reverse merger transactions before becoming delinquent with their SEC filings.

Brokers and dealers should be aware that, pursuant to Exchange Act Rule 15c2-11, at the termination of the trading suspension, no quotation may be entered relating to the securities of the subject companies unless and until the broker or dealer has strictly complied with all of the provisions of the rule. If any broker or dealer is uncertain as to what is required by the rule, it should refrain from entering quotations relating to the securities of these companies that have been subject to a trading suspension until such time as it has familiarized itself with the rule and
is certain that all of its provisions have been met.

Any broker or dealer with questions regarding the rule should contact the staff of the SEC at (202) 551-5777. If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider the need for prompt enforcement action. If any broker, dealer or other person has any information which may relate to this matter, they should immediately communicate it to the Delinquent Filings Group of the Division of Enforcement at (202) 551-5466, or by e-mail at [email protected].

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 at [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.

Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855
www.SecuritiesLawyer101.com