Koshiro Kiyota
Singapore-based edtech Genius Group (NYSE:GNS) stock soared as high as 206% Thursday after it announced it was issuing a special dividend and could execute a possible stock buyback, reverse stock split and/or dual listing in an effort to combat suspected manipulation of its ordinary shares.
Shares of Genius opened at $0.85, slipping to a low of $0.74 before jumping to a high of $1.65 in late morning, up 206% from Wednesday’s close. The stock recently changed hands at $1.47 at approximately $11:35 a.m. ET. Genius stock, which debuted in April, had been trading below $1 since early November.
Genius announced earlier Thursday that its lawyers have found evidence that certain individuals and/or companies appear to have sold but not delivered a “significant” number of the company’s shares “as part of a market manipulation scheme seeking to artificially depress the price of the company’s ordinary shares.” It added that it was working with government regulators on the matter.
The company added that it has assembled a task force to investigate the situation, headed by Genius director and former FBI Deputy Director Timothy Murphy, along with company director Richard Berman and Genius CEO and Chairman Roger Hamilton. Genius is also exploring taking legal action against individuals involved in the scheme.
Genius also intends to pay a special dividend “which management believes may help to expose those who may have participated in market manipulation.” It also exploring a dual listing of its ordinary shares, which it believes could make illegal naked short selling of its shares more difficult.
The company also plans to hold a special shareholders meeting to vote on measures such as a stock buyback and/or reverse stock split to further discourage “predatory and illegal” trading activity.
Genius Group shares have been highly volatile since they debuted on April 12, soaring to close 421% higher than their initial public offering price of $6 per share. The company offered 3.3M shares, raising around $22.6M.
The stock hit a 52-week high of $36.75 on April 12 and a 52-week low of $0.30 on Jan. 3.
Earlier this month, Genius announced plans to launch an at-the-market financing transaction of up to $7.5M.
Image and article originally from seekingalpha.com. Read the original article here.