SEC halts trade in mysterious $35 billion OTC stock
The U.S. Securities and Exchange Commission on Monday temporarily halted trade in Neuromama Ltd, whose shares have quadrupled to about $56 in over the counter trading this year, citing concerns including “potentially manipulative” transactions.
The company, whose website and filings say it runs a search engine based on neural technology, is in talks to license “heavy ion fusion” and sells a line of computing devices, had a market value of about $35 billion as of the stock’s last trade on Aug. 5.
That puts the Baja California, Mexico-based company ahead of Twitter Inc, American Airlines Group Inc and Sprint Corp.
Neuromama was valued at $4.73 billion on Jan. 15, 2014, when it had 630.1 million shares outstanding, according to a regulatory filing.
The company has not filed quarterly results since then.
The SEC on Monday also cited the accuracy and adequacy of information on “the identity of the people in charge of the company” as reasons for the halt.
Steven Schwartzbard, chairman of the company’s advisory board, said the suspension was in response to pressure from short-sellers.
“We’re suffering from a negative side effect caused by our success. That’s the only way I can put it,” Schwartzbard said in an email to Reuters.
“We went public, as virtually all small public companies do, on the over-the-counter market. And everything was fine while the stock sold for $5 or $7.50 a share.”
The spike in Neuromama’s market value is redolent of the story of Cynk Technology Corp, a company with no assets or revenue whose market cap rose on paper to almost $6 billion in the span of 16 trading days in mid-2014.
so who are these people and what has sent their stock flying?..very suspicious movement and even more suspicious is the lack of information in regards to this company..
“The company, whose website and filings say it runs a search engine based on neural technology, is in talks to license “heavy ion fusion” and sells a line of computing devices, had a market value of about $35 billion as of the stock’s last trade on Aug. 5.”