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Globe says SEC suspends trading in OTC high-flyer

2014-07-14 08:50 ET - In the News

The Globe and Mail reports in its Saturday edition the Securities and Exchange Commission has halted trading on a high-flying tech company whose shares gained 25,000 per cent over the past 17 days. The Globe's David Hains writes on Friday, the SEC suspended shares in OTC listing CYNK Technology Corp. "because of concerns regarding the accuracy and adequacy of information in the marketplace and potentially manipulative transactions." The company's sudden rise from a penny stock to a $6-billion valuation has captured the attention of regulators and the financial community for many reasons: It has only one employee, no revenue, no assets and no one seems to know what it does or whether it even exists (all figures U.S.). The company was founded as Introbuzz by event promoter Kenneth Carter in May, 2008, conceived as a social networking site that connects fans to their favourite celebrities. Its website, Introbiz.com, contains images of celebrities and offers their contact information for a fee, typically $50. According to a legal document, Javier Romero took a controlling share position in 2014 and subsequently changed the company's headquarters from Las Vegas to Belize City. Its halted share price is $13.90.

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