The Securities and Exchange Commission halted trading in shares of development stage software company Pingify International Inc. Wednesday morning due to suspicious activity by a website that pumped up the stock’s value, MarketWatch reports.
“It appears to the Securities and Exchange Commission that the public interest and the protection of investors require a suspension of trading in the securities of Pingify International Inc. because of concerns regarding potential manipulative activity in Pingify’s common stock that appears to be related to a promotional campaign currently being conducted through various Internet web sites,” the SEC order of suspension of trading reads.
The agency added; “The Commission cautions broker-dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company.”
The firm will be able to resume trading on May 28.
HotStocked blog said that StockTips—a website that claims to employ a team of stock market researchers to offer tips on stocks—has promised that Pingify stock, which had been trading at around 74 cents a share on Thursday, would be going up to $2 per share. According to HotStocked, Pingify’s chief financial officer issued a letter to shareholders on the second day of the promotion of Pingify stock urging both the SEC and the Financial Industry Regulatory Authority to investigate, claiming that those behind the $6.5 million promotion are most likely the owners of a large number of extremely cheap shares.
HotStocked discovered that back in 2012, Pingify sold 25 million shares for just $0.005 each. At the height of the promotion, the stock was trading for more than $1.70 a share, and in an email alert coming just moments before the suspension was imposed, StockTips claimed that Pingify would reach $2 per share.