Alberta\’s securities regulator has halted trading of a stock that soared in value despite minimal assets or cash in the underlying company.
ChitrChatr Communications Inc. says it\’s developing the \”ultimate communications platform,\” one which combines multiple messaging services into one free application. However the firm’s assets are restricted. As of Oct. 31, it had just $45,243 of current assets, including cash, against $167,259 of current liabilities. The communications platform is valued around the books below $800,000.
Yet the organization had a market capitalization of $75.4-million when the Alberta Securities Commission (ASC) halted trading this week. The 15-day halt was applied within section of Alberta’s securities act that \”gives the ASC the authority to act quickly to protect investors and also the market from potential harm,\” said Mark Dickey, a spokesman for that regulator.
There have been no allegations of wrongdoing.
In an argument, ASC executive director David Linder said \”circumstances exist or are about to occur that could result in apart from orderly trading\” of ChitrChatr securities.