$UBIA – UBI BlockChain Internet Ltd. Gets Suspended by the SEC

Earlier today the Chinese Blockchain company known for its small 40,000 share float, which hit $115 a share last month, was suspended by the SEC today. This came 2 weeks after UBI Blockchain Internet, Ltd. (“the Company” or the “Registrant”) Board of Directors approved a three-for-one (3:1) common stock dividend (the “dividend”), of the Company’s issued and outstanding Class A and Class B common stock, par value $0.001, with a record date of January 9, 2018 and a payment date of January 10, 2018, based on FINRA’s execution of this corporate action.

Apparently, the SEC needs to take a look into the company. Similar to the “pop ups” of marijuana companies years ago, the SEC is scrutinizing all the new Crypto companies entering the penny world. Unfortunately, when UBIA does come off suspension, they will be listed on the dreaded “Grey Sheets”, where there is no visual bid or ask. Earlier this year BITCF had a similar fate, and still trades on the greys. Although the share price has hung around decent trading levels, it would be trading much higher if never suspended.

Here is today’s SUSPENSION:


 

SEC Suspension of Trading

Jan 08, 2018

OTC Disclosure & News Service

Washington, D.C. –

U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

SECURITIES EXCHANGE ACT OF 1934
Release No. 82452 / January 5, 2018

The 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 in the securities of UBI Blockchain Internet, Ltd. (“UBIA”), of Hong Kong, Peoples Republic of China at 9:30 a.m. EST on January 8, 2018, and terminating at 11:59 p.m. EST, on January 22, 2018.

The Commission temporarily suspended trading in the securities of UBIA because of (i) questions regarding the accuracy of assertions, since at least September 2017, by UBIA in filings with the Commission regarding the company’s business operations; and (ii) concerns about recent, unusual and unexplained market activity in the company’s Class A common stock since at least November 2017. This order was entered pursuant to Section 12(k) of the Securities Exchange Act of 1934 (Exchange Act).

The Commission cautions broker-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 it has complied with the rule, it 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, it should refrain from entering quotations relating to UBIA’s securities until such time as it has familiarized itself with the rule and is certain that all of its provisions have been met. If any broker or dealer enters any quotation which 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 which may relate to this matter, they should contact John P. Lucas of the Division of Enforcement’s Cyber Unit at (202) 551-5798. The Commission appreciates the assistance of the Financial Industry Regulatory Authority


DISCLOSURE: PSInvestor.com holds NO position nor were compensated for this article.

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