Based on the SEC information and USOG response the main issue is USOG failed to publicly notify investors they restated their financials. A simple oversight but nevertheless a violation with ramifications. USOG is not a pinkie anymore and if they want to play with the big boys (SEC reporting companies) they must follow all the rules 100%.
While the USOG press release on this issue clearly and publicly stated they did not pay for promotion of the stock, my first thought was the issue was with the Private Placement and USOG soliciting investors.
I’m still concerned that may be the case. The 2 risks I see from this SEC action is a sell off when trading resumes and a short term risk to the Private Placement. Investors have short memories so a few months from now, this event will be history – provided it doesn’t happen again.
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