Marketwire news July 30
BCSC Executive Director's Bulletin: Securities Regulator Gives Notice of a Hearing to Extend Temporary Order Against U.S. Over-The-Counter Bulletin Board Company
VANCOUVER, BRITISH COLUMBIA, Jul 30, 2009 (Marketwire via COMTEX) -- The executive director of the British Columbia Securities Commission has issued a notice of hearing to extend a temporary order against a Surrey-headquartered company quoted on the U.S. over-the-counter bulletin board because of suspicious trading activity.
The temporary order bars all B.C. trading of the shares of Sungro Minerals Inc., a Nevada-incorporated company with its head office in Surrey. The company purports to be engaged in mineral exploration.
Prior to the current cease-trade order, the BCSC halted trading of Sungro shares on two occasions in July 2009. BCSC staff is concerned that persons may have engaged in conduct that resulted in or contributed to an artificial price for Sungro shares, contrary to Section 57 of the Securities Act.
The notice of hearing alleges that Sungro seed shareholders sold shares of the company between June 15 and July 6 that represented about 45 per cent of the trading volume in Sungro shares. The trading price changed from US$0.35 to US$4.75 - an increase of 1,357 per cent.
BCSC staff says Sungro had not issued any news release or other disclosure that would have accounted for the share price increase. The company told BCSC staff that it had no explanation for the share price increase.
The notice notes that Sungro has a working capital deficiency of US$18,565 with no other assets and no revenues.
Since the expiry of the second halt trade order on July 15, five publicly-reported trades of Sungro shares occurred, with the most recent trade on July 29 at US$4 a share.
Sungro shares have been cease-traded until Aug. 12, 2009 as BCSC staff makes further inquiries into the company's "dramatic" share price increase.
These allegations have not been proven. A hearing will be held at the 12th floor hearing room, 701 West Georgia St., Vancouver, BC on Aug. 12, 2009 at 10 am. At the hearing, counsel representing the Executive Director will ask the Commission to extend the temporary order.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the notice of hearing on our website, www.bcsc.bc.ca. If you have questions, contact Andrew Poon, media relations, 604-899-6880.
SOURCE: British Columbia Securities Commission
CONTACT: B.C. Securities Commission
Andrew Poon
604-899-6880 or (Canada) 1-800-373-6393
www.bcsc.bc.ca
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INDUSTRY KEYWORD: Professional Services/Associations
SUBJECT CODE: LAW/LEGAL ISSUES
