19 Aug EDVP becomes the first suspended ticker to return from the grey sheets in over 2 1/2 years
For the first time in over 2 1/2 years, a ticker has managed to return from the grey sheets after getting suspended.
We had previously done research on Endeavor Power Corp (EDVP) back on November 13, 2012 pointing out its ugly history and the way the ticker was being set up for an insider enrichment scheme. See that report here.
As expected, EDVP did end up being the subject of a paid promotion on March 6, 2013 with PennyStocks VIP receiving $55,000 to promoted EDVP.
The very next day on March 7, 2013, Endeavor Power Corp (EDVP) got suspended by the SEC for what the SEC called:
"questions that have been raised regarding the accuracy of assertions in Endeavor Power’s public filings and press releases relating to, among other things, patents"
Another PennyStocks VIP promoted ticker, Face up Entertainment Group Inc (FUEG), would also end up getting suspended by the SEC on April 4, 2013. PennyStocks VIP promoted FUEG on September 3, 2012.
In May of 2013, EDVP started putting out information that they had filed a 15c-211 to get off the greys with market maker MBAY sponsoring them.
In June of 2013, EDVP published a press release correcting the false information in their press releases that helped lead to the suspension.
"CAMBRIDGE, Mass., June 11, 2013 /PRNewswire/ -- Endeavor Power Corporation ("Endeavor Power" or the "Company") (OTCQB: EDVP) provides corrections to two separate press releases issued by the Company on January 9, 2013, with the headline "Endeavor Power Corporation Outlines Its New Target market, Its Size and Projected Growth," and March 8, 2013, with the headline "Endeavor Power Corporation Introduces Its Proprietary FDA Cleared Target System Platform Technology".
The January 9, 2013, Press Release referenced that the "point-of-care testing ("POCT") market has been predicted to reach a total market value of $34.6 billion by 2021, according to a recent report published by Kalorama Information". The correct source for the information was the not Kalorama Information but the "Point of Care Diagnostics: World Market Outlook, 2011-2021", published in December 2011 by Visiongain, a UK based business information provider. The market data in the January 9, 2013, Press Release following paragraph, "With the ability to help reduce healthcare costs while simultaneously improving patient care, POCT represent a significant and growing share of the global in vitro diagnostics ("IVD") market, according to the marketing research firm Kalorama. In 2010 the value of the POCT market was $13.4 billion and grew to $13.8 billion in 2011. Over the five-year period to 2016 the market is expected to experience a compound annual growth rate (CAGR) of 3.7%, to further increase its value to $16.5 billion." was sourced from August 31, 2010, The Worldwide Market for In Vitro Diagnostics 7th Edition published by Kalorama Information.
The March 8, 2013, Press Release contained multiple conflicting statements regarding the Company's technology and intellectual property. The Release stated under the paragraph header "controlled Flow-Through Rapid Immunoassay Test" that "Endeavor's US Patent Pending Target System Diagnostic Platform…" and that the that the vacuum pump component of the system was "patented," and then later referred to the vacuum pump as "the unique vacuum pump" and then later referred to the Platform as "Patented Platform" instead of "US Patent Pending Platform".
The Company's intellectual property and diagnostic testing platform was patented, but all issued patents have since expired or been abandoned. The Company has filed 3 USPTO Application's, which are currently published and patent pending, and one US and International Patent Application currently pending.
The Company would like to formally correct the March 8, 2013 Press Release and eliminate the word "patented" and instead use the word "unique". Additional information on the Company's Patents and FDA 510(k) Cleared tests can be found in its public filings at EDGAR.com"
Before the suspension, EDVP was a fully reporting SEC company. While working on the 15c-211, EDVP continued to keep up with their SEC filings doing both required 10Q filings while trading on the grey sheets.
Apparently it has become just that easy. Today after the close, FINRA announced that Endeavor Power Inc (EDVP) would be returning to the OTCBB starting tomorrow, August 20, 2013.
EDVP becomes the first suspended ticker to return from the grey sheets in over 2 1/2 years. The last ticker to return from the grey sheets after a suspension was Emergent Health Corp (EMGE) which got suspended on September 30, 2009. EMGE was moved from the grey sheets to the pink sheets on February 28, 2011 after receiving a "No Enforcement Recommendation" letter from the SEC. Learn more here. Since EMGE, over 1411 tickers have been suspended and none have returned from the grey sheets. See this post for more details of the fate of the last 1411 suspended tickers.
EDVP should release an 8-K explaining how they re-qualified for quotations. The scariest part of this situation is that investors will expect other suspended tickers to be relisted in the future.
Bag holders stuck in suspended scam tickers will be calling their ticker the next EDVP. CEOs of suspended tickers will now have a much easier time continuing to scam investors after their tickers are suspended.