FT. LAUDERDALE, Fla.
May 17, 2013
/PRNewswire/ -- iTalk Inc. (OTCQB: TALK) (OTCBB: TALK) ("iTalk" or the "Company"), a global provider of advanced communications and mobile broadband services, would like to inform its investors and regulators that it has come to our attention that the Company's shares have been listed on the Boerse Berlin Stock Exchange ("BBSE") by an unidentified third party, without our approval, consent or knowledge. The Company did not authorize or direct any broker on the BBSE to act as a market maker for the company's common stock.
Based on other recent unauthorized listings on the BBSE, the Company believes this is the first step in what will be a significant naked shorting attack directed at the Company. On
April 26, 2013
, another OTCQB traded company, Lot78, Inc., announced that a similar naked short selling tactic had been utilized to potentially negatively manipulate the price of their common stock. Subsequently, after bringing the scheme to an apparent halt, short sellers were caught in a "short squeeze". Accordingly, iTalk, through its legal counsel, will be contacting the BBSE and the broker sponsoring the BBSE listing to demand immediately delisting the Company's stock from the BBSE and bring a similar end to the potential manipulation of TALK shares.
The Company reserves all rights to pursue legal action against the broker sponsoring this listing and any market maker that has engaged in naked short selling in direct violation of Regulation SHO.
The Boerse Berlin Stock Exchange is one of the few stock exchanges in the world that allows listing and trading of a company's stock without the consent or authorization of the company being listed. This practice may facilitate both domestic and foreign brokers in circumvent restrictions imposed by both the Financial Industry Regulatory Authority ("FINRA") and the Securities and Exchange Commission relating to the trading practice referred to as "naked short selling". Short selling is a trading practice whereby investors borrow stock from a broker to sell in the hopes that the stock price will decline before they have to return the share to the broker to cover their position. Many naked short selling attacks involve groups of people working in concert to manipulate the market in order to force a company's share price lower for personal profit. Naked short sellers can list an OTCBB or OTCQB traded company on the BBSE in order to delay delivery of shares under the short position.