Mobile Reach Technologies is fighting what it calls “naked short selling” of its stock.
The mobile data solutions provider (OTCBB: MBRI) says it is one of 300 US. Publicly traded companies listed on the Berlin Stock exchange without “the company’s knowledge or authorization.”
Mobile Reach is “demanding immediate delisting” and is “taking appropriate actions against the domestic and foreign brokerage firms responsible for the unauthorized listing.”
The Cary-based firm says such listings are designed to avoid recent US regulations against “naked short selling” which it defined as “groups of people working together to manipulate the marketing by selling fictitious shares of stock in an effort to force a company’s share price to go down.”
Mobile Reach stock closed at 18 cents on Tuesday, far off its 52-week high of 80 cents. The company said a decline in its stock “is related to this unauthorized listing.”
“We are not going to rest until this naked short selling is brought to an end,” said Michael Hewitt, the company’s president and CEO. “Our company continues to deliver on its business plan — evidenced by the past three quarters of at least double-digit revenue increases. Illegal short selling counteracts the company’s successful efforts to raise money. It must be stopped for our company to continue its forward momentum.”
Mobile Reach: www.mobilereach.com