The Securities and Exchange Commission has issued a temporary trading suspension of First Bitcoin Capital Corp. (OTC: BITCF) shares because of concerns about the accuracy and adequacy of public information on the Canadian company.
The order took effect at 9:30 a.m. EDT last Thursday and terminates at 11:59 a.m. on September 7, 2017. The SEC cited concerns about the company, including the value of BITCF’s assets and its capital structure, in a news release accompanying the suspension order.
Shares of First Bitcoin Capital are traded over-the-counter and were last trading at $1.79 per share, according to Bloomberg. Shares had risen almost 7,000 percent this year prior to the suspension order. By contrast, the S&P 500 is up nine percent during the same time period.
“The Commission cautions broker-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 the company,” the SEC noted in its statement.
First Bitcoin Capital management issued a notice to shareholders downplaying the 10-day suspension.
“The company has retained competent SEC counsel to work with the SEC to learn of any concerns beyond the over exuberant market for our shares such as our disclosures of assets and capital structure,” the company stated in its shareholder letter. “We believe that there is likely a misunderstanding or a simple clarification necessary and that it would have been better for the SEC to ask us for this information before taking such drastic action.”
According to its website, First Bitcoin Capital is a publicly-traded Canadian company engaged in various digital cryptocurrency-related business lines. It holds proprietary blockchain technologies and operates a digital currency exchange.
For more information, visit the company’s website at www.BitcoinCapitalCorp.com
