The U.S. Securities and Exchange Commission on Tuesday morning halted trading on seven nanocap stocks for failure to file periodic reports. The temporary halt went into effect at 9 AM EDT and is scheduled to run through 11:59 PM EDT on March 24, 2014.
The companies halted:
· George Foreman Enterprises, Inc. (GFME)
· MacKay Life Sciences, Inc. (BZEC)
· Reinsurance Technologies, Ltd. (a/k/a Solution Technology International, Inc.) (RSRN)
· Tire International Environmental Solutions, Inc. (TRIE)
· WatchIt Technologies, Inc. (WTCT)
· Weststar Financial Services Corporation (WFSC)
· WorldSpace, Inc. (WRSPQ)
OTC Markets has each company listed as a “Pink,” the lowest level of their platform. Each company is also tagged with “Caveat Emptor” (buyer beware) with a “skull and crossbone” image warning investors to beware because of the lack of public information and transparency. The skull is also meant to alert the investing community of several other potential reasons for concern about a company. These may include a promotion/spam without adequate current information; investigation of fraud or other criminal activity; SEC suspension (i.e. today’s halt); undisclosed corporate actions; unsolicited quotes; or another public interest concern.
OTC Markets does not provide quotes for companies bearing the Caveat Emptor moniker.
According to the SEC release, “The Commission cautions brokers, dealers, shareholders and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by these companies.”
The latest SEC filings from the companies were in the distant past. For example, George Foreman Enterprises last filed a quarterly report on November 14, 2011. The same is true for the other companies with no filings shown in recent years. Simply, there are all kinds of red flags surrounding these companies, so steer clear.