(1) Claim Central
The Alberta Securities Commission (“ASC“) issued two notices today. The first was a warning about a company called “Claim Central” which purports to be an asset recovery agency claiming to be capable of recovering funds from the numerous binary financial scams that have targeted Canadians in the past. In order to activate a claim, Claim Central asks claimants to send them $550 in Bitcoin upfront. The ASC says that the scam is using the names of real persons in order to give it legitimacy.
Asset recovery is only possible in Canada as a result of a Court ordered process (a litigation, for example) or by a regulator exercising its powers under statute. A private non-law company is not authorized to recover for victims of fraud absent one of the above authorizing the activity.
(2) Softlab9 Software Solutions Inc.
The second notice from the ASC was of a temporary halt trade order against a British Columbia incorporated reporting issuer named Softlab9 Software Solutions Inc. (“Softlab“). The order prohibits the trading in all the securities of Softlab. No reason is given for the halt trade except that the ASC notice mentioned the ASC’s ability to halt trade when there are unexplained fluctuations in the trading of securities. To that point, Stockwatch noted that the price of its securities went to $1.39 from $0.39, and that it was promoting a disinfectant and alleged facilities being erected in Alberta.
On SEDAR, the auditor of Softlab is listed as Saturna Group in Vancouver.
Its SEDAR profile says that it is in the business of industrial products. It’s press releases, however, say that it is a Blockchain incubator. There is no filing on SEDAR regarding a change of business to pivot into the disinfectant manufacturing industry, even though it appears that the existing disclosure record cannot be relied upon to fairly value its securities.
The company appears to have no office in British Columbia, despite being an issuer there. It has what is called an R&R in British Columbia.
Despite filings of press releases announcing material events including deals, contracts, acquisitions, debt covenants, joint ventures and allegedly a contract for the manufacturing of disinfectants, including for Covid-19 purposes, there appears to be not one material contract filed on SEDAR from 2018 to the present.
It recently released a press release in respect of Covid-19 and a prospective deal with something called “clean go green go” which it represents creates a “new line of defence against viral and bacterial agents, including the human coronavirus” which allegedly can help “curb the spread of the Covid-19 pandemic,” which then quotes a car wash person in Canada. There is no known cure for Covid-19 at this time and there is no basis in securities disclosure for a car wash person to opine in respect of Covid-19 for an issuer.
Not too long ago, the Vancouver issuer stated that it was a “FinTech and Blockchain incubator,” and alluded to having a US entity that rented space in South Carolina to focus on Blockchain technology that it said it created to streamline an alleged due diligence and compliance process with data intelligence allegedly obtained from 200 global parters with proprietary technology.
The issuer had also announced something called CatchCoin that is or was allegedly a Blockchain app with agreements allegedly entered into for the provision of services to catch coins. It says it raised $1.9 million to acquire that app. The app does not appear on the download pages on any app stores as at today’s date. Apparently, it disposed of substantially all of the undertaking of the CatchCoin $1.9 million investment but there are no material contracts in respect thereof on SEDAR. To whom it was disposed of and for what consideration for shareholders was not disclosed in that particular press release.
A website for different technology that it stated on SEDAR was fully operational and generating revenues does not open.
Subsequently, it announced it was getting into the cannabis space when that was a hot market.
And now the Covid-19 space because it is a hot market.
Before the ASC acted, it is likely that the securities of Softlab may have been halt traded by market regulators in any event because of its announced foray into manufacturing of industrial disinfectants, which appears to an average investor to be a change of business and a fundamental change.
As at December 31, 2019, according to its audited financial statements, Softlab had only approximately $7,000 in cash and had paid over $600,000 in consulting and management fees in the operating year. Its working capital as at that date was – $690,343.
And its accumulated deficit? – $7,474,729.