The SEC Suspends Trading of the Common Shares of Southridge Enterprises by staff103


More Info
									The SEC Suspends Trading of the Common Shares of Southridge

Posted on December 28, 2012 by Brenda Hamilton, Attorney

                                            On Dec 28, 2012, the Securities and Exchange
Commission (“SEC”) announced an SEC trading suspension, pursuant to Section 12(k) of
the Securities Exchange Act of 1934 (the “Exchange Act”), of the securities of Southridge
Enterprises, Inc., a Nevada corporation (“Southridge”). At the time of the trading
suspension, Southridge was quoted on the OTC Markets with a Pink Sheets current
information tier. The most recent attorney opinion posted on the OTC Markets website for
Southridge was dated October 26, 2012, and provides that Southridge had provided
“adequate current public information”. The SEC’s Order of Suspension of Trading provides,
“It appears … that there is a lack of current and accurate information concerning the
securities of Southridge because of questions regarding the accuracy of statements made by
Southridge in press releases to investors concerning, among other things, the company’s
business operations and arrangements, including certain claims regarding a joint
partnership and an arrangement to obtain funding and to change the listing venue for
Southridge stock.”

In its release announcing the Southridge trading suspension, the SEC cautioned broker-
dealers, shareholders, and prospective investors to carefully consider the trading suspension
along with all other currently available information and any information subsequently
issued by the issuer.

About SEC Trading Suspensions

Section 12(k) allows the SEC to suspend trading in a public company’s securities when it
believes a trading suspension is required to protect investors and the public interest. Prior
to initiating an SEC trading suspension, the SEC investigates certain factors and
circumstances surrounding the issuer and its securities. In many instances, an SEC trading
suspension results in a subsequent enforcement action.

Factors that frequently lead to an SEC trading suspension include:
● A lack of current, accurate, or adequate information about an issuer;

● Questions about the accuracy of publicly available information about an issuer including
in press releases and reports, about the issuer’s current operational status, financial
condition, or business transactions; and

● Questions about trading in a security, including trading by insiders, potential market
manipulation, and the ability to clear and settle transactions in the stock.

Compliance with Rule 15c2-11 After an SEC Trading Suspension

Pursuant to Rule 15c2-11 under the Exchange Act, upon the termination of the SEC trading
suspension, no broker or dealer may enter a quotation for an issuers common shares unless
and until they have strictly complied with all of the provisions of Rule 15c2-11. If any broker
or dealer is uncertain as to what is required by Rule 15c2-11, he should refrain from entering
quotations relating to an issuers securities until such time as they are certain that all
provisions of 15c2-11 have been complied with. If a broker or dealer enters a quotation
which is in violation of 15c2-11, the SEC may determine enforcement action is warranted.

A list of companies with SEC trading suspensions can be found at:

For further information about this article, please contact Brenda Hamilton, Securities
Attorney at 101 Plaza Real S, Suite 201 S, Boca Raton Florida, (561) 416-8956, by email at or This memorandum is
provided as a general informational service to clients and friends of Hamilton & Associates
Law Group and should not be construed as, and does not constitute, legal and compliance
advice on any specific matter, nor does this message create an attorney-client relationship.
For more information concerning the rules and regulations affecting the use of Rule 144,
Form 8K, FINRA Rule 6490, Rule 506 private placement offerings, Regulation A, Rule 504
offerings, Rule 144, SEC reporting requirements, SEC registration on Form S-1 and Form
10, Pink Sheet listing, OTCBB and OTC Markets disclosure requirements, DTC Chills,
Global Locks, reverse mergers, public shells, go public direct transactions and direct public
offerings or please contact Hamilton and Associates at (561) 416-8956 or by email at Please note that the prior results discussed herein do not
guarantee similar outcomes.

To top