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by Mike Caswell
The U.S. Securities and Exchange Commission has suspended Kallo Inc., a penniless Toronto OTC Markets listing that claims to have contracts worth billions of euros in Africa. The SEC says that there are questions about the accuracy of the company's claims. Among other things, Kallo said that it would provide services as part of a planned "National Healthcare Infrastructure" in Kenya, but a Kenyan politician told local media that there is no contract with Kallo.
The suspension is contained in an administrative order that the SEC issued on Wednesday, March 24. The brief order states that the SEC has serious concerns about the accuracy of claims that Kallo made in a regulatory filing on March 3, 2021. That filing, a Form 10-K (or annual report), listed five contracts that the company claimed to have entered in the second half of 2020.
The SEC has not spelled out its concerns, but the contracts appear to warrant at least some scrutiny, given the dollar amounts that the company claims are involved. Those amounts (which can only be found deep within the notes to Kallo's 10-K) range as high as 1.8 billion euros. Kallo says that five countries (Kenya, Eswatini, Ethiopia, Mozambique and Eritrea) will take out large loans and hire it to provide health infrastructure services.
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