SEC ISSUES STATEMENT ON CYNK TRADING HALT (CYNK)
The SEC has issued a statement on the trading halt in shares of CYNK Technology.
Earlier this morning, CYNK shares were halted for trade, though nothing official had been released by the SEC.
Now, the SEC has suspended trading in CYNK until July 24, "because of concerns regarding the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in CYNK's common stock."
CYNK, which gained nearly 25,000% in just a few days, was the top story of the day yesterday as the company's meteoric rise came despite the company's having no revenue.
At one point yesterday, the company's market cap surged to more than $5 billion.
According to OTC Bulletin Board, the halt is a "U3" halt, which is an "extraordinary event halt."
From the OTC Bulletin Board:
"Trading is halted because FINRA has determined that an extraordinary event has occurred or is ongoing that has had a material effect on the market for the OTC Equity Security or the security underlying an OTC ADR or has caused or has the potential to cause major disruption to the marketplace or significant uncertainty in the settlement and clearance process."
Yesterday Street Insider, citing sources, reported that trading in CYNK was being looked at by regulators and that a suspension of trading in shares of CYNK was coming soon.
Here's the full statement from the SEC.
SECURITIES EXCHANGE ACT OF 1934 Release No. 72594 / July 11, 2014
The U.S. Securities and Exchange Commission announced the temporary suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934 (the “Exchange Act”), of trading of the securities of Cynk Technology Corp. (“CYNK”), of Belize City, Belize at 9:30 a.m. EDT on July 11, 2014, and terminating at 11:59 p.m. EDT on July 24, 2014.
The Commission temporarily suspended trading in the securities of CYNK because of concerns regarding the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in CYNK’s common stock.
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.
Further, brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspension, no quotation may be entered unless and until they have strictly complied with all of the provisions of the rule.
If any broker or dealer has any questions as to whether or not he has complied with the rule, he should not enter any quotation but immediately contact the staff in the Division of Trading and Markets, Office of Interpretation and Guidance, at (202) 551-5777.
If any broker or dealer is uncertain as to what is required by Rule 15c2-11, he should refrain from entering quotations relating to CYNK’s securities until such time as he has familiarized himself with the rule and is certain that all of its provisions have been met.
If any broker or dealer enters any quotation that is in violation of the rule, the Commission will consider the need for prompt enforcement action.
If any broker, dealer or other person has any information that may relate to this matter, they should immediately contact Michael D. Paley, Assistant Regional Director, New York Regional Office at (212) 336-0145, or Elisha L. Frank, Assistant Regional Director, Miami Regional Office at (305) 982-6392.
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