IIROC Briefly Halts Facedrive Stock After Two Days of Strong Trading


The Investment Industry Regulatory Organization of Canada (IIROC) briefly halted trading in Facedrive shares twice on September 17.

Shares of the Toronto-based rideshare company, which were once worth as much as $ 60 a share, suddenly rose 131% today before starting to slide back down. At time of going to press, the stock was worth C $ 4.66, down from $ 2.17 when the market opened. It was as low as 87 cents on September 15.

Both times, IIROC has imposed a circuit breaker, a trading pause when stocks get too volatile.

Following the termination and resumption of trading on TSX, Facedrive issued a press release stating that it would “confirm, at the request of IIROC, that its management is not aware of any changes. important in the Company’s operations which would explain the recent increase in market activity.

In recent weeks, Facedrive’s shares have been the subject of a sale by one of its founders, creating tensions between the founder and former president, and the current company.

In recent weeks, Facedrive’s shares have been the subject of a sale by one of its founders, creating tensions between the founder and former president, and the current company.

The motley fool reported on September 17 that the Facedrive share “surprised the markets with its huge jump of 128% yesterday [September 16]. The rise came after 10 straight days of massive sales that collectively wiped out 83% of its market value. Speculators seem to be betting big on the volatility of this oversold name, which has led to the recent surge. “

On September 13, Facedrive co-founder and former chairman Imran Khan issued a press release saying he had sold 8.4 million Facedrive shares, transferring them to a family trust for “estate planning.”

Khan also said his company, ISRR, had control over 19.7 million shares, representing about 20.7% of the issued and outstanding shares of Facedrive. ISRR transferred some of these shares to a numbered company in which Khan has a 33% stake.

Khan said that with the shares dispersed between ISRR and the number company, 263 Ontario, he no longer had enough shares to materially affect control of the company. As a result, Khan said he could “immediately begin selling the shares” he owns along with those held in the two companies without being subject to a lock-up or escrow agreement.

Khan has indicated that he intends “to decrease his investment, directly or indirectly, in the securities of the issuer from time to time, depending on market conditions or any other relevant factor and subject to periods of contractual blocking and escrow arrangements “.

The Facedrive stock has been at the center of the fighting between Khan and his former company. The troubled company filed a suspected insider trading complaint against Khan in August.

For his part, Khan alleged that the company could face insolvency proceedings.

Khan could not be reached for comment and it was not clear at time of publication whether he had filed a defense.

In a statement of his own released on September 7, former Facedrive CEO Sayan Navaratnam – who resigned from the company on September 1 – alleged that Khan’s sale of his shares had “had a dramatic impact on value. of stocks, and caused it to trend negatively almost every day thereafter.


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