The United States Securities and Exchange Commission (SEC) has suspended trading in the securities of Bangi, Inc. (BNGI), an inactive company touted on social media. The regulator says it is acting in order to protect investors.
Bangi is a defaulted Nevada Corporation based in Grosse Pointe Farms, Michigan. The SEC notes that there are questions regarding the accuracy and adequacy of information about BNGI and its securities in the marketplace concerning, among other things, BNGI’s activities, and potentially fraudulent trading activity affecting the market for its securities.
Since at least mid-January 2021, certain social media accounts may be engaged in a coordinated attempt to artificially influence BNGI’s share price. Also, BNGI’s share price and trading volume have greatly increased since at least mid-January 2021 in the absence of any publicly available news from BNGI.
BNGI’s common stock is quoted and traded on OTC Link whose parent company is OTC Markets Group Inc., under the symbol BNGI. As of February 17, 2021, BNGI’s stock had six market makers and was eligible for the “piggyback” exception of Exchange Act Rule 15c2- 11(f)(3).
The SEC has ordered that trading in the securities of the above-listed company is suspended for the period from 9:30 a.m. EST, on February 23, 2021 through 11:59 p.m. EST on March 8, 2021.
Let’s recall that, earlier in February, the SEC took a similar action regarding SpectraScience Inc. (OTC:SCIE), an inactive Minnesota-based corporation. The regulator suspended trading in the company amid questions surrounding online promotion of the company’s securities and recent trading activity.