ICOA Inc. (OTCMKTS: ICOA) fell 79% after the Nevada-based company, which focuses on acquisitions of blockchain-enabled businesses and projects, released an official company statement offering clarification as well as a shareholder update on the Caveat Emptor (CE) placed on its after-hours trading ticker on Friday, May 13, 2022.
On Monday, ICOA stock fell 79% to $0.0009 with more than 245.84 million shares traded, against a volume of 56.91 million shares. The stock moved in a range from $0.0002 to $0.0015 after opening trading at $0.0009.
Official Company Statement Regarding Caveat Emptor
A CE security is a security that the OTC Markets Group attributes to equity after determining that there is a potential risk to investors, such as promotion of shady stocks, regulatory suspension, investigation of known fraudulent activity by insiders or the company, or disruptive actions of the company.
The current management of the ICOA was informed of the situation after the EC was placed on the ICOA ticker on May 13, 2022, and did not understand the reason. Following internal investigations and information submitted by ICOA shareholders on the company’s public Discord channel, the CE placement appears to be related to a legal issue involving ICOA’s former management team. So ICOA is worth watching in the coming weeks.
Hadria Wong, CEO of ICOA, comments: “My colleagues and I would like to reassure that we, together with experienced lawyers, are working tirelessly to resolve the current issue with the best interests of our shareholders in mind.”
ICOA shares are trading below the 20-day and 50-day moving averages of $0.0044 and $0.0061 respectively. Additionally, the stock is trading below the 200-day moving average of $0.0085.