SK3 Group (OTC Pink: SKTO) Responds to Recent SEC Suspension of Trading
SK3 Group (OTC Pink: SKTO) Responds to Recent SEC Suspension of Trading
LOS ANGELES, CA--(Marketwired - Jun 6, 2014) - The SEC determined on June 6, 2014 to impose a temporary suspension in trading of the stock of SK3 Group, Inc. (OTC Pink: SKTO) (PINKSHEETS: SKTO) ("the Company") that may extend through June 19, 2014. The purpose of this statement is to inform shareholders about the information currently available to the Company on this subject and to directly address, to the extent possible, several of the questions we have received from shareholders and investors.
The Company did not have any advance warning, hint, or knowledge of the impending SEC suspension order. The Company learned of the SEC's actions at the same time as the market, on the morning of June 6, 2014.
We do not know what caused the SEC to issue its order, and the SEC is not obliged to provide information to the Company or its shareholders with respect to the reason or bases for its order. The Company is commencing an effort to reach out to the SEC to understand the SEC's concerns and then endeavor to address them. The Company will not speculate about the reasons, and the Company recommends that investors, even though they are disappointed by this temporary result, not speculate either but wait to see what happens as a result of this process. As soon as any regulatory concerns are identified for the Company, the Company will address them fully.
The Company has no knowledge of irregularities that may warrant a suspension of trading in its securities but the fact remains that the SEC ordered a trading halt, as it is permitted to do by law.
The Company understands that the SEC has expressed concerns with the market sector, medical cannabis, in which the Company operates and has shut down several companies in that space before its recent order affecting the Company. Frankly, having seen the activities and announcements of some companies in this space, the Company can understand those concerns. We are glad that we are not one of those companies, instead operating a viable, established, and visible business in California, as we have been doing for over a year.
The Company continues and will continue to operate its business in all of its forms, notwithstanding the SEC order. The SEC order does not affect the Company's core and day-to-day business operations and we will continue to deliver high quality products and services that enhance the lives of medical cannabis patients in California.
If the history of other stocks in the marketplace is any guide, after the SEC order expires or when trading resumes there is likely to be a negative impact on price per share in the Company's stock. The Company will do everything it reasonably can do to minimize the impact of the SEC's decision on its shareholders and business relationships. We urge our shareholders, customers, and partners to engage in calm consideration of information as it becomes available but we do understand that this is a very difficult time for all involved. We appreciate your frustration, as we are similarly frustrated. We have operated in this space for more than a year and are perplexed after having built a lawful new business, in a new and growing space, that is viable, visible, active, and objectively confirmable to find that the SEC has concerns, but they are engaging in their role as provided by law and we respect that. While they did not provide more than formalistic language justifying the suspension in their order, that too is their prerogative and we look forward to working with the SEC to glean their concerns and address them proactively.
We do not like controversy, but we also do not shy away from it. We are confident that we are building an industry leading business in the medical cannabis space and we will continue to do so. Undoubtedly those on the investor boards who accomplish some form of reward from spreading fear, uncertainty, and doubt will use this as an opportunity to do so with even louder volume; but do not be misled, they too lack any information as to why the SEC did what it did as only the SEC knows that. We certainly are not going to opine on that subject and we would caution you to view with a great deal of skepticism anyone on any investor board who does so.
We are committed to launching the products and services we have already announced we will launch -- they are under development and some are nearly finished. We are also continuing to move ahead with the audit of our financial statements and the merger we had already announced and hope to complete that shortly but in due course given the current situation.
We remain fully dedicated to finding out what gave rise to the SEC concerns and to keeping shareholders fully informed when reliable information is obtained. In the meanwhile, we ask, respectfully, that our shareholders and investors maintain a demeanor of calm and patience notwithstanding frustrations that we all feel in this challenging time; acting on frustration will not accelerate our path through this process and may hinder it. We will not give up and we are committed to seeing this through.
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