Trust Stamp announces proposed action to address suspected naked short-selling
August 24 2023 - 9:10AM
Trust Stamp (Nasdaq: IDAI), the Privacy-First Identity CompanyTM
announced that it is examining measures to address potential
illegal short selling of its stock. The Company said that it
believes certain individuals and/or companies may have engaged in
illicit naked short selling that may have artificially depressed
its stock price. Trust Stamp’s board will consider a number of
options to address this activity including the engagement of
forensic experts, as well as working with other listed companies
and their counsel that have identified similar trading activity in
their shares.
Gareth N Genner, Chief Executive Officer of the Company,
commented, “Our concerns as to possibly illicit short selling
activities were reinforced when the Securities and Exchange
Commission (“the SEC”) exercised its powers under Regulation SHO to
place the stock on the “Threshold List” as a consequence of
failures to deliver that can in some instances be indicative of
naked shorting.
Inclusion on the Threshold List signifies that for five
consecutive settlement days there had been a failure to deliver at
least 10,000 shares which also had to comprise at least 0.5% of our
total shares outstanding. Over the last month, a very large
proportion of our trading volume has been short sales and it is
reasonable to assume that this shorting activity may have
artificially depressed the stock price.
Short selling is not necessarily illegal, but with limited
exceptions such as bona fide market makers, a seller intentionally
and improperly placing short sales not knowing that they have
borrowed or located the shares, or being reckless as to whether
they will be able to borrow or locate the shares, maybe liable for
fraud in addition to breaches of SEC regulations. In this case it
appears from the continuing failures to deliver that one or more
short sellers may have made short sales without having borrowed or
located the shares needed to cover their short positions.
Given the damage that illicit short selling causes to legitimate
investors, we are working to uncover any such activities and then
obtain advice as to potential civil remedies to obtain restitution
for the damage caused, as well as proactively cooperating with the
SEC, U.S. Department of Justice, FINRA and Nasdaq in respect of
enforcement action that can be pursued against any bad actors that
are identified.”
Inquiries
Trust Stamp
Email: Shareholders@truststamp.ai
Gareth Genner,
CEO
About Trust Stamp
Trust Stamp the Privacy-First Identity CompanyTM, is a global
provider of AI-powered identity services for use in multiple
sectors including banking and finance, regulatory compliance,
government, real estate, communications, and humanitarian services.
Its technology empowers organizations with advanced biometric
identity solutions that reduce fraud, protect personal data
privacy, increase operational efficiency, and reach a broader base
of users worldwide through its unique data transformation and
comparison capabilities.
Located in six countries across North America, Europe, Asia, and
Africa, Trust Stamp trades on the Nasdaq Capital Market (Nasdaq:
IDAI). The company was founded in 2016 by Gareth Genner and Andrew
Gowasack.
Safe Harbor Statement: Caution Concerning Forward-Looking
Remarks
All statements in this release that are not based on historical
fact are “forward-looking statements” including within the meaning
of the Private Securities Litigation Reform Act of 1995 and the
provisions of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The information in this announcement may contain
forward-looking statements and information related to, among other
things, the company, its business plan and strategy, and its
industry. These statements reflect management’s current views with
respect to future events-based information currently available and
are subject to risks and uncertainties that could cause the
company’s actual results to differ materially from those contained
in the forward-looking statements. Investors are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date on which they are made. The company does
not undertake any obligation to revise or update these
forward-looking statements to reflect events or circumstances after
such date or to reflect the occurrence of unanticipated
events.
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