Replies to post #114035 on Protagenic Therapeutics Inc. (PTIX)

[Quinton]

No guarantee a Wells notice will be filed or responded to.

From your article:


There is no legal requirement for a regulator to provide a Wells Notice to you, however it is the practice of the SEC and the NASD to provide such notice. Procedurally, the SEC and NASD Staff (the people you are dealing with during the investigation) do not have the authority to commence proceedings. They need to obtain approval to commence proceedings. The approval process is handled without any input from the prospective defendant.



As demonstrated by these examples, a Wells Submission can be a valuable tool for the defendant. It gives the prospective defendant the opportunity to speak to the decision maker and to have his or her position on the substance of the matter heard before a decision is made to commence proceedings. At the same time responding to a Wells Notice can ultimately harm a prospective defendant’s position at the hearing and in later negotiations. It is therefore extremely important for a prospective respondent or defendant to analyze the pros and cons with their attorney before making the submission.