From the SEC news release:
SEC Continues Microcap Fraud Crackdown, Proactively Suspends Trading in 255 Dormant Shell Companies.
The Securities and Exchange Commission today announced the latest actions in its microcap fraud-fighting initiative known as Operation Shell-Expel, suspending trading in 255 dormant shell companies ripe for abuse in the over-the-counter market.
Since Operation Shell-Expel began in 2012, the SEC Enforcement Division’s Office of Market Intelligence has been cleaning up the microcap marketplace by scrutinizing penny stocks nationwide and identifying clearly inactive companies. This has enabled the SEC to proactively suspend trading in several hundred dormant shell companies before fraudsters have an opportunity to manipulate them.
Remarkably, the SEC published a handy alphabetical list of the names of all 255 companies.
Why these companies are 255 reasons to create an IR website:
OTC Markets is a viable, important market – not only for Emerging Growth Companies but for international corporations’ ADR listing, like Heineken N.V. (OTCQX: HEINY) that just listed on the OTC markets last week. (awesome!)
Unfortunately, the fraudulent pump-and-dump schemes can taint the entire microcap brethren. Ethical corporations, on ALL EXCHANGES, need to demonstrate their commitment to transparency – and an investor relations website is the easiest media to do that. In fact, only 27% of investors reported they would invest in a company that did not show its transparency via an IR website. ( see report here )
Helping microcaps is a specialty for us… beginning with their S-1, right through into the shareholder communications. We actively turn away business from stock-promoters and rant against pumpers often here on this blog.
We invite microcap companies to speak with us about using transparency as differentiation. We have special microcap solutions, realistically priced-tiered. Use this form.
Have a great day.