iTalk Comments on Unauthorized Listing on Boerse Berlin Stock Exchange and Naked Short Selling
FT. LAUDERDALE, Fla., May 17, 2013 /PRNewswire/ -- iTalk Inc. (OTCQB: TALK) (OTCBB: TALK) ("iTalk" or the "Company"), a global provider of advanced communications and mobile broadband services, would like to inform its investors and regulators that it has come to our attention that the Company's shares have been listed on the Boerse Berlin Stock Exchange ("BBSE") by an unidentified third party, without our approval, consent or knowledge. The Company did not authorize or direct any broker on the BBSE to act as a market maker for the company's common stock.
Based on other recent unauthorized listings on the BBSE, the Company believes this is the first step in what will be a significant naked shorting attack directed at the Company. On April 26, 2013, another OTCQB traded company, Lot78, Inc., announced that a similar naked short selling tactic had been utilized to potentially negatively manipulate the price of their common stock. Subsequently, after bringing the scheme to an apparent halt, short sellers were caught in a "short squeeze". Accordingly, iTalk, through its legal counsel, will be contacting the BBSE and the broker sponsoring the BBSE listing to demand immediately delisting the Company's stock from the BBSE and bring a similar end to the potential manipulation of TALK shares.
The Company reserves all rights to pursue legal action against the broker sponsoring this listing and any market maker that has engaged in naked short selling in direct violation of Regulation SHO.
The Boerse Berlin Stock Exchange is one of the few stock exchanges in the world that allows listing and trading of a company's stock without the consent or authorization of the company being listed. This practice may facilitate both domestic and foreign brokers in circumvent restrictions imposed by both the Financial Industry Regulatory Authority ("FINRA") and the Securities and Exchange Commission relating to the trading practice referred to as "naked short selling". Short selling is a trading practice whereby investors borrow stock from a broker to sell in the hopes that the stock price will decline before they have to return the share to the broker to cover their position. Many naked short selling attacks involve groups of people working in concert to manipulate the market in order to force a company's share price lower for personal profit. Naked short sellers can list an OTCBB or OTCQB traded company on the BBSE in order to delay delivery of shares under the short position.
At iTalk, we are a mobile communications company using innovative and disruptive technologies to offer consumers a high quality cellular alternative while severely undercutting all major national carriers. Our lead product is the iTalk Sleeve, which when combined with an iPod Touch, our iTalk mobile app, and our aggressive pricing plans, provides consumers with a No Contract, High Voice Quality, and Lowest Price in the industry alternative to traditional cellular coverage. We will continue to search out and develop innovate products and services that will reduce consumers monthly voice and data charges while providing them with additional functionality. Through our access to an extensive network, we are able to offer nationwide voice and data coverage to 280 million people in more than 12,900 cities.
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Disclaimer/Safe Harbor: Statements about the Company's future expectations and all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. The above information contains information relating to the Company that is based on the beliefs of the Company and/or its management as well as assumptions made by and information currently available to the Company or its management. When used in this document, the words "anticipate," "estimate," "expect," "intend," "plans," "projects," and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the current view of the Company regarding future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or projected. In each instance, forward-looking information should be considered in light of the accompanying meaningful cautionary statements herein. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, the impact of competitive services and pricing and general economic.
SOURCE iTalk Inc.