Alberta’s securities regulator has halted trading of a stock that soared in value despite minimal assets or cash in the underlying company.
ChitrChatr Communications Inc. says it is developing the “ultimate communications platform,” one that combines multiple messaging services into one free application. But the firm’s assets are limited. As of Oct. 31, it had just $45,243 of current assets, including cash, against $167,259 of current liabilities. The communications platform is valued on the books at less than $800,000.
Yet the company had a market capitalization of $75.4-million when the Alberta Securities Commission (ASC) halted trading this week. The 15-day halt was applied under a section of Alberta’s securities act that “gives the ASC the authority to act quickly to protect investors and the market from potential harm,” said Mark Dickey, a spokesman for the regulator.
Peter Koven and Barbara Shecter – Financial post – March 13, 2015
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