CAPETOWN, South Africa, Nov. 12, 2012 /PRNewswire/ -- Leatt Corporation (OTCQB: LEAT), a global developer, marketer and distributor of the personal protective equipment for sports enthusiasts, said today that it believes that a trade of its securities on Friday, November 9, 2012, was most likely made in error, and that it has asked the Financial Industry Regulatory Authority (FINRA) to investigate that trade. Leatt will be announcing its third quarter results on Thursday, November 15, 2012, and the Company believes that there is no fundamental or business reason for the sudden drop in the price of its shares.
The Company implemented a 1-for-25 reverse stock split which was cleared by FINRA on October 2, 2012, subject to the usual 20-day trading under a temporary ticker, LEATD, indicating the split. Prior to the reverse split, the price of the Company's common stock ranged from $0.02 - $0.04, and the first trade after the reverse split was at $1.00. While the Company's common stock did not trade often during the period after the reverse split, when it did trade, the price varied between $1.00 and $0.51. Prior to the odd trade on November 9, 2012, which was for 720 shares, the last quoted price of the Company's common stock was $0.51, but the odd trade was executed at $0.02 per share. Although the total that changed hands was $14.40, it closed the stock down 96% on that day.
Leatt believes that one of the market makers parked on the security may have mistakenly kept the pre-reverse split quote after the reverse split had already been executed, and that an out-of-date LEAT quote may have been responsible for the precipitous decline in price on a trade for $14.40. However it happened, the Company believes that there is no fundamental reason for a drop in valuation.
"We are concerned that a trading error for such a small amount may have derailed much of our efforts to increase shareholder value over the past year," commented Sean Macdonald, the Company's Chief Executive Officer and Chief Financial Officer. "We hope that FINRA will investigate the matter and take appropriate corrective measures."
About Leatt Corporation
Leatt Corporation develops, distributes and markets personal protective equipment and ancillary products for all forms of sports, especially extreme motor sports. The Leatt-Brace® is an award-winning neck brace system considered the gold standard for neck protection for anyone wearing a crash helmet as a form of protection. It was designed for participants in extreme sports or riding motorcycles, bicycles, mountain bicycles, all-terrain vehicles, snowmobiles and other vehicles.
This press release may contain forward-looking statements regarding Leatt Corporation (the "Company") within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the significance of FINRA's investigation of the odd trade and the likelihood that it will take corrective measures with respect thereto; the general ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "seeks," "should," "could," "intends," or "projects" or similar expressions, involve known and unknown risks and uncertainties. These statements are based upon the Company's current expectations and speak only as of the date hereof. Any indication of the merits of a claim does not necessarily mean the claim will prevail at trial or otherwise. Financial performance in one fiscal period does not necessarily mean continued or better performance in the future. The Company's actual results in any endeavor may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, which factors or uncertainties may be beyond our ability to foresee or control. Other risk factors include the status of the Company's common stock as a "penny stock" and those listed in other reports posted on The OTC Markets Group, Inc.
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SOURCE Leatt Corporation