During trading on the stock exchange in the United States, June 24, 2016
The Commission on securities and exchange Commission (U.S. Securities and Exchange Commission, SEC) has suspended till August 27, 2016 shares of the startup NeuroMama involved in the development of the Internet search engine with artificial intelligence. The company was established in Novosibirsk but is now based in the Mexican Rosarito.
In a statement on its website, the SEC explained the decision on the suspension of trading in securities NeuroMama lack of full and adequate information about the people managing the company as well as concerns about “potentially manipulative transactions” in the company’s shares. In addition, according to the SEC, the company, whose shares are traded in the OTC trading system of the OTC Markets, could spread untrue messages about her listing on the NASDAQ.
The price of shares of NeuroMama less than a year jumped more than five times, points out Reuters. At the end of December, the price of shares was $10, by the beginning of may 2016 the price has tripled, and by the end of July reached $56,5 per share. In the course of trading on 5 August, the market capitalization of a little-known company exceeded $35 billion, more than twice the value of Twitter Inc. ($14,763 billion), and then beating and Tesla Motors ($33.5 billion).
As noted by Reuters, the market is aware of cases where the rapid growth of quotations was caused by the application of the scheme to “pump and dump” (pump-and-dump). It involves resale for several times the securities followed by a gradual increase in the share price. Then at the peak value they are sold to inexperienced investors. Shares of NeuroMama in 2016 actually sold small lots (hundreds, rarely a few thousand pieces), but the startup did not show formal charges of manipulation, the Agency said.
In NeuroMama suspension of share trading believe the reverse side of company’s success in developing the world’s first search engine-based Neurotechnology, a message on the company website. The report States that the main feature of a search engine NeuroMama is the quality and ability to “learn” how the person”, whereas the accuracy of the results of other search engines “is aimed at meeting the companies that buy advertising on these search engines.
The head of the Advisory Board Steven Schwartzbard NeuroMama, also known, according to Reuters, as Vladislav (Stephen) Zubkis, linked the decision of the SEC with the pressure of speculators. “We have suffered from negative side-effect of our own success. It’s the only way I can explain what is happening,” said Schwartzbard letter to the Agency.
NeuroMama in the message, published on its website earlier, the rapid growth of the company’s capitalization was due to the growth of the market of information technology and advertising industry. The company does not exclude that in the future, its shares could rise to $1 thousand apiece, that is still about 20 times. The communication stressed that the security of the investment in the shares of NeuroMama is also provided by its investments in the tourist industry, including the implementation of the project Victoria Nautical Escallera that must be put in balance “large plots of land on the Mexican coast of the Gulf of California.
“No matter how fast NeuroMama, Ltd. to achieve its objectives to make NeuroMama search engine and social network Vica.life popular and profitable project Victoria Nautical Escallera guarantees to shareholders the value of NeuroMama shares”, — noted in the message of the company (spelling preserved).
Commenting on the decision of the SEC, Schwartzbard also noted that NeuroMama is working to ensure that restrictions on the sale of its securities were removed from 27 August, and intends to increase the level of its listing on NASDAQ.
According to Reuters, in 1997 Schwartzbard was accused of organizing schemes of psychological pressure on private investors for the purpose of selling their shares, and in 2007 was sentenced to five years in prison for defrauding investors invested in the reconstruction of the casinos in Las Vegas.