The US Securities and Exchange Commission has ordered the suspension trading in UBI Blockchain Internet Ltd.(UBIA) stock. The company’s stock rose over 900% last year in the wake of the popularity of digital currencies.
Now, the SEC has temporarily halted the sale and purchase of UBI BLockChain stock because of market activity that it describes as “unusual and unexplained” since at least November of last year involving the company’s Class A common stock.
It also has questions regarding the accuracy of claims that the company made in financial statements. Addressing the SEC’s move, UBI Blockchain CEO Tony Liu contended that his company, which touts blockchain technology, is not the same as bitcoin companies.
UBI Blockchain, which is based in Hong Kong, claims that it wants to utilize the decentralized-ledge technology of blockchain so that consumers can track the “original source” of a drug or food product. Two weeks ago, in a 3-to-1 trading split, the company’s market value hit over $1B. It’s current market value is more than $800M.
em>Bloomberg reports that it was only recently that UBI BLockChain switched to the technology that shares the same name. Previous to that, its executives ran a company that manufactured the UrinStopper, which is a patch that prevents bedwetting. UBI BlockChain was called JA Energy until November 2016.
The Bloomberg article also notes that UBI Blochain is $6.3M in debt,lacks revenue, has less than $15,500 in available cash, and its phone number is disconnected. This data was reportedly found in a filing detailing that company executives planned to sell their own shares in UBI BlockChain. Last month, the company submitted a form S-1/A noting plans to sell 20,582,00 of Class A Common Stock belonging to two shareholders, as well as 51,700,000 of Class C Common Stock also owned by shareholders.
The SEC said that it believes it is in the best interest of the public and for investors’ protection to suspend trading of UBI Blockchain securities. The temporary cessation ends on January 22 at 11:59PM EST.
If you are an investor that purchased UBI Blockchain Internet stock that was sold to you by a broker or investment adviser, contact Shepherd Smith Edwards and Kantas, LTD LLP immediately to request your free case consultation. One of our securities fraud attorneys can help you determine whether you have grounds for a securities claim.
Crypto Stock That Surged 900% in 2017 Is Hit With SEC Halt, Bloomberg, January 8, 2018
Read the SEC Suspension (PDF)
More Blog Posts:
SEC Accuses Broker of Giving Some Customers Preferential IPO Access in Exchange for Over $1M in Kickbacks, Stockbroker Fraud Blog, January 2, 2018
Houston Technology Company is Accused of $28M Texas Securities Fraud, Stockbroker Fraud Blog, December 26, 2017
Ameriprise Ordered to Pay $8M Over F-Squared Alpha Sector Strategy Sales, Institutional Investor Securities Blog, December 8, 2017