SEC temporarily halts trading in shares of WOD Retail Solutions over claims related to COVID-19


The Securities and Exchange Commission temporarily suspended trading in the shares of WOD Retail Solutions Inc.
WODI,
-5.43%

because of questions about information on the company’s website and claims made in texts and emails from an anonymous source saying the company will benefit from demand for its products during the coronavirus pandemic. Parker, Colorado-based WOD Retail uses automated kiosks to sell retail items in fitness centers, according to its website. The SEC said the website claims those kiosks “would generate additional revenue as a result of the COVID-19 pandemic, when in fact the company earned no revenue at all in 2018 or 2019.” The SEC also said texts and emails from an unknown source that were sent to investors claimed that the company “would expand its business to take advantage of the need for its contactless kiosks during the COVID-19 pandemic.” Those claims predicted the stock would rise sharply, by as much as 300% according to one text, even though the company has no business activity or revenue. A representative for the company said it had no comment. The SEC has been cracking down on companies over claims made by them or by third parties regarding products for testing, treating or preventing COVID-19 and has warned investors to beware of scams.



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