Spotlight on Microcap Fraud
The over-the-counter (OTC) market for securities, often referred to the microcap market, is designed for and comprised of companies with small amounts of assets and low stock prices. More than 10,000 companies have shares that trade on the OTC market’s two inter-dealer quotation systems: the OTC Bulletin Board (OTCBB) and OTC Markets Group, Inc. (f/k/a Pink Sheets). While companies that trade their stocks on major exchanges undergo a formal application process and must meet minimum listing standards, companies quoted on the OTCBB or the OTC Markets do not have to apply for listing or meet any minimum financial standards.
Watch out for these “Red Flags” when investing in Microcap Stock
SEC Trading Suspensions
Spam
Assets are Large but Revenues are Small
Odd Items in the Footnotes of Financial Statements
Unusual Auditing Issues
Insiders Own Large Amounts of Stock
What if I Want to Invest in Microcap Stocks?
To invest wisely and avoid investment scams, research each investment opportunity thoroughly and ask questions. These simple steps can make the difference between profits and losses:
Find out whether the company has registered its securities with the SEC or your state's securities regulators.
Make sure you understand the company's business and its products or services.
Read carefully the most recent reports the company has filed with the SEC and pay attention to the company's financial statements, particularly if they are not audited or not certified by an accountant.
If the company does not file reports with the SEC, be sure to ask your broker for what's called the "Rule 15c2-11 file" on the company.
Check out the people running the company with your state securities regulator, and find out if they've ever made money for investors before. Also ask whether the people running the company have had run-ins with the regulators or other investors.
Make sure the broker and his or her firm are registered with the SEC and licensed to do business in your state. And ask your state securities regulator whether the broker and the firm have ever been disciplined or have complaints against them.
QNTA IS NOT A SCAM
What is QNTA if it is not a scam?
Glad you asked.
QNTA is a company with very unique products due to a specific ingredient (scorpion venom).
Company Overview
Quanta, Inc. ("Quanta") is a cutting-edge technology platform whose patented, proprietary technology harnesses advances in quantum biology to increase the potency of active ingredients. Currently, Quanta supports product formulations in pain management, anti-inflammation, skincare, anti-aging, nutritional supplements, and plant-based consumables. Ultimately, Quanta's mission is to deliver better, more effective ingredients to elevate product efficacy, reduce waste and facilitate healthier, more sustainable consumption.
The company has the potential of two significant revenue streams.
1. The Aelia product line, Immunapen product line and other products.
2. Escozine for use to treat Covid-19 and in the future to treat cancer.
The first revenue stream is a tradition one. The more product sales the more potential for the stock to appreciate. The are many ways to get more sales and QNTA has executed some them and has plans to do more.
The second revenue stream is a quite a bit more complex, laborious and costly. However the rewards for getting this to the market would be priceless. Although QNTA is engaged with FDA to go from Pre-IND to IND
sooner than later, they still have to much work to do moving forward.
The second revenue stream has the most upside.
