With its second suspension of trading in an active stock promotion this month (the prior suspension was of SUSA), it looks like the SEC is finally getting serious about companies that issue inaccurate press releases to coincide with their stock promotion. Endeavor Power Corp (EDVP) was suspended today prior to the market open.
From the order:
It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Endeavor Power Corp. (“Endeavor Power”), quoted under the ticker symbol EDVP, because of questions regarding the accuracy of assertions in Endeavor Power’s public filings and press releases relating to, among other things, patents.
The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of the above-listed company.
Endeavor Power had been promoted yesterday (technically, after the market close on 3/6/2013) and had 1,486,475 shares trade that day. See one of the promotion emails online. It was promoted by Andalusion Holding Co. websites (which now appear to be violating CANSPAM by no longer including a legal name and address at the bottom of their emails):
Please be advised by Serious Penny Stock has been compensated fifty five thousand dollars for this email alert
The Andalusion Holding Co. websites are as follows:
Endeavor Power previously had been promoted on January 9th by Blue Wave Advisors LLC and a couple other promoters:
BlueWave Advisors LLC has been compensated seven thousand five hundred dollars from Bulls in Advantage LLC for EDVP marketing and promotional services.
There is also currently a landing page online at http://www.edvpreport.com/ that dicloses a $230,000 budget to promote Endeavor Power Corp. See an archived PDF copy of that page.
Investor Alley Inc. expects to be compensated two hundred thirty thousand dollars for the creation of this promotional effort of EDVP. Affiliates, managers, employees, and third parties of Investor Alley Inc. may have shares of EDVP and may liquidate, which will negatively affect the share price of EDVP.