iTalk threatens Berlin stock exchange with legal action
21 May 2013 Florida
Image: Shutterstock
The mobile communications company iTalk has informed its investors that the company's shares have been listed on the Börse Berlin Stock Exchange without its approval, in a strongly worded release.
Based on other recent unauthorised listings on the BBSE, the company stated, it believes that the listing is the first step in what will be a “significant naked shorting attack” directed at the company.
It added that on 26 April, another OTCQB traded company, Lot78, announced that a similar naked short selling tactic had been used to potentially negatively manipulate the price of its common stock.
Subsequently, after bringing the scheme to an apparent halt, short sellers were caught in a "short squeeze".
Lot78 is a unisex clothing brand whose stock experienced a 400 percent rise in April after an aggressive marketing campaign. As an ongoing business entity, it has zero revenue and net losses of $38,000 for the most recent reported quarter.
ITalk went on to state that its legal counsel will be contacting the BBSE and the broker sponsoring the listing to demand that its stock is immediately delisted.
“The company reserves all rights to pursue legal action against the broker sponsoring this listing and any market maker that has engaged in naked short selling in direct violation of Regulation SHO.”
The BBSE is one of the few stock exchanges in the world that allows listing and trading of a company's stock without the consent or authorisation of the company being listed.
ITalk is a wireless technology value-added reseller, and focuses on the development and launch of technology and products in the communications markets. The company focuses on the marketing and distribution of its iTalk phone devices. It provides wholesale and retail telecommunications services, and products worldwide. The company was formerly known as Sopac Cellular Solutions.
Most recently, it signed a letter of intent to acquire the assets and business of Global Telelinks, a 10-year-old international telecommunications company.
Based on other recent unauthorised listings on the BBSE, the company stated, it believes that the listing is the first step in what will be a “significant naked shorting attack” directed at the company.
It added that on 26 April, another OTCQB traded company, Lot78, announced that a similar naked short selling tactic had been used to potentially negatively manipulate the price of its common stock.
Subsequently, after bringing the scheme to an apparent halt, short sellers were caught in a "short squeeze".
Lot78 is a unisex clothing brand whose stock experienced a 400 percent rise in April after an aggressive marketing campaign. As an ongoing business entity, it has zero revenue and net losses of $38,000 for the most recent reported quarter.
ITalk went on to state that its legal counsel will be contacting the BBSE and the broker sponsoring the listing to demand that its stock is immediately delisted.
“The company reserves all rights to pursue legal action against the broker sponsoring this listing and any market maker that has engaged in naked short selling in direct violation of Regulation SHO.”
The BBSE is one of the few stock exchanges in the world that allows listing and trading of a company's stock without the consent or authorisation of the company being listed.
ITalk is a wireless technology value-added reseller, and focuses on the development and launch of technology and products in the communications markets. The company focuses on the marketing and distribution of its iTalk phone devices. It provides wholesale and retail telecommunications services, and products worldwide. The company was formerly known as Sopac Cellular Solutions.
Most recently, it signed a letter of intent to acquire the assets and business of Global Telelinks, a 10-year-old international telecommunications company.
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