Saturday, February 17, 2018

Pet Company Name Change to Include "Blockchain" - Stock Soars

According to a report at CNBC.com, a company known for having a veterinary products patent and developing new ways to test for disease changed its name to Riot Blockchain, and watched its stock soar from $8 per share to $40 per share.

The article is here. If the story is true it would be additional evidence of the cryptocurrency craze being real, and a significant problem for some investors. While it appears that the company did in purchase some mining equipment after the name change, it certainly wasn't in the cryptocurrency business, if the CNBC article is correct.

Which of course means that its new shareholders bought shares in a company based on nothing. Add to this allegations that a major shareholder sold as the stock price was rising and the issuance of additional shares around the same time, and you have an interesting series of events which could lead to significant shareholder losses.

Public company changes name to Riot Blockchain,

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Mark Astarita is a securities attorney with 30 years of national experience representing investors, funds and securities professionals in securities and computer fraud litigation . If you have experienced losses in cryptocurrency related investments, give him a call at 212-509-6544.
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