Thein lies the issue. Anyone who has done thorough research knows the root cause of the CE here.
The cause was not initiated by anyone in the company.
When identified as a promotion, it was investigated and found not to be attributed by anyone affiliated with company.
After which the statement was put out by the company on 11/10/2022 confirming such.
Anyone close to this knows who did it, but frankly it does'nt matter now and is not worth discussing.
What is worth discussing is a "catch all" in the OTCM's promotion policy
that IMO is illegal.
The policy states that if a promotion is found, even if it is found to NOT to be directly attributed to, or initiated by the company
,a company can have a CE/promotion flag placed on it. (yes that's on their website)
However, case law states:
"A public company may not be held directly liable for a false promotion that was not paid for or initiated by them if they can demonstrate that they were not involved in the creation or dissemination of the false promotion, and that they had no knowledge of it. "
So a random person spinning up a email server, a random article ,tweet ,anything in the public domain can be cause for the CE.
This unfailry leaves any company venerable to application of the CE by OTCM markets if they "think" it has influenced the public or "caused shareholder concern" .
Their is no appeal process, there are no time limits on the investigation, no due process, no limits on discovery, no disclosure to the shareholders who "had the concern"
So this process can easily cause MORE CONCERN by shareholders if things remain quiet and goes contrary to every other market on the planet, and even local laws.
This is a company killer, full stop. Many companies after the lost of market liquidity due to share price drop simply cannot afford a protracted investigation and eventually fail.
What is also IMO illegal is that the OTCM has unrestrained limits on what they can accuse and hold the company in CE for.
Initial reason for CE is NEVER offcially disclosed therefore if refuted and disproven as in our case can drag on indefinity as they can due " fruit form the poisonous tree" investigations asking for things not even related to business operations.
This is a PERFECT tool to be used in if not an illegal manner, definitely and unethical one to protect other entities from damages like shorts.
The OTCM demands disclosure from companies, via filings yet discloses nothing, even as companies REMAIN pink current with no apparent reason on CE.. indefinitely.
Term limits need to be applied, you don't prove your initial accusation with in a set time limit, CE comes of, no witch hunts. You want confidence in the markets you open your mouth. Practice what you preach.. But.. they wont.. cause.., well you know...
GLTU
