SEC suspends trading in five more cos amid social media hype
The United States Securities and Exchange Commission (SEC) announced the temporary suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934, of trading of the following securities:
- 1pm Industries, Inc. (OPMZ)
- Arista Financial Corp. (ARST)
- Biomagnetics Diagnostics Corp. (BMGP)
- Deep Blue Marine, Inc. (DPBE)
- Texhoma Energy, Inc. (TXHE)
The regulator explains that its action reflects questions regarding:
- the adequacy and accuracy of information concerning the securities of each of the issuers listed above because questions have arisen as to their operating status, if any;
- the recent, increased activity and volatility in trading in the securities of each of these issuers, in the absence of any publicly available news or recent information by these issuers; and
- certain social media accounts may have been or may be engaged in a coordinated attempt to artificially influence their share prices.
The stock of each of the issuers above is quoted and traded on OTC Link whose parent company is OTC Markets Group, Inc. None of the issuers above has posted any information with OTC Markets Group, Inc. or filed any information with the SEC for at least nine months.
The Commission cautions brokers, dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company.
Brokers and dealers should be alerted to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspensions, no quotation may be entered relating to the securities of the subject companies unless and until they have strictly complied with all of the provisions of the rule.
The suspension will last from 9:30 a.m. EST on March 11, 2021, until 11:59 p.m. EDT on March 24, 2021.
Let’s recall that, in February 2021, the SEC suspended trading in the securities of 15 companies due to questionable trading and social media activity. The regulator said back then that it continues to review market and trading data to identify other securities where the public interest and the protection of investors require trading suspensions.