Owner
Post by Franko10 ™ on Mar 18, 2005 12:21:05 GMT -5
SEC Takes Action Against CMKM, Deregistration Possible
12:13 EST Friday, March 18, 2005
NEW YORK (Dow Jones)--The Securities and Exchange Commission has begun administrative proceedings against CMKM Diamonds Inc. (CMKX).
The SEC said in an order on March 16 that CMKM Diamonds is delinquent in its financial filings requirement and that the regulator took action against the company to protect investors.
The Commission said it will set a public hearing before an administrative law judge to determine whether CMKM Diamonds' registration "should be suspended for a period not exceeding 12 months, or revoked." No hearing date has been set but under SEC rules of practice, an initial decision must be issued by the administrative law judge within 120 days of the order instituting the proceedings.
Earlier this month, the SEC temporarily suspended trading in the stock of CMKM Diamonds because of questions about the "adequacy of publicly available information concerning, among other things, CMKM Diamonds' assets and liabilities, mining and other business activities, share structure and stock issuances, and corporate management." Trading resumed on March 17.
This tiny diamond mining company has been trading on the unregulated Pink Sheets market and has not made any regulatory disclosure since late 2002. Billions of shares of CMKM Diamonds routinely change hands each day and its elusive number of outstanding shares had been the topic of much speculation until recently when the company said it had some 703.5 billion shares issued and outstanding.
CMKM Diamonds shares were recently trading at $0.0002, up 100%, on volume of more than 1.1 billion shares.
In its release announcing the temporary trading halt of CMKM Diamonds' stock, the SEC said it "is concerned that CMKM Diamonds may have unjustifiably relied on a Form S-8 to issue unrestricted securities." The SEC said it is "also concerned that CMKM Diamonds and/or certain of its shareholders may have unjustifiably relied on Rule 144(k) of the Securities Act of 1933 ("Securities Act") in conducting an unlawful distribution of its securities that failed to comply with the resale restrictions of Rules 144 and 145 of the Securities Act."
CMKM Diamonds has said it is in the process of reinstating its reporting status.
Canadian securities regulators are also targeting the company. Last November, regulators in the province of Saskatchewan issued an order enjoining CMKM Diamonds president and large shareholder Urban Casavant, and two others from selling CMKM Diamonds shares without proper registration. That order, issued by the Saskatchewan Financial Services Commission, was originally scheduled to expire Nov. 9 but was extended until the commission receives "satisfactory information."
CMKM Diamonds has been the subject of several Dow Jones "In The Money" columns which highlighted its huge daily trading volume and the lack of information surrounding the company and its mineral claims.
-By Carol S. Remond; Dow Jones Newswires; 201 938 2074; carol.remond@ dowjones.com
Dow Jones Newswires
03-18-05 1212ET
Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.
12:13 EST Friday, March 18, 2005
NEW YORK (Dow Jones)--The Securities and Exchange Commission has begun administrative proceedings against CMKM Diamonds Inc. (CMKX).
The SEC said in an order on March 16 that CMKM Diamonds is delinquent in its financial filings requirement and that the regulator took action against the company to protect investors.
The Commission said it will set a public hearing before an administrative law judge to determine whether CMKM Diamonds' registration "should be suspended for a period not exceeding 12 months, or revoked." No hearing date has been set but under SEC rules of practice, an initial decision must be issued by the administrative law judge within 120 days of the order instituting the proceedings.
Earlier this month, the SEC temporarily suspended trading in the stock of CMKM Diamonds because of questions about the "adequacy of publicly available information concerning, among other things, CMKM Diamonds' assets and liabilities, mining and other business activities, share structure and stock issuances, and corporate management." Trading resumed on March 17.
This tiny diamond mining company has been trading on the unregulated Pink Sheets market and has not made any regulatory disclosure since late 2002. Billions of shares of CMKM Diamonds routinely change hands each day and its elusive number of outstanding shares had been the topic of much speculation until recently when the company said it had some 703.5 billion shares issued and outstanding.
CMKM Diamonds shares were recently trading at $0.0002, up 100%, on volume of more than 1.1 billion shares.
In its release announcing the temporary trading halt of CMKM Diamonds' stock, the SEC said it "is concerned that CMKM Diamonds may have unjustifiably relied on a Form S-8 to issue unrestricted securities." The SEC said it is "also concerned that CMKM Diamonds and/or certain of its shareholders may have unjustifiably relied on Rule 144(k) of the Securities Act of 1933 ("Securities Act") in conducting an unlawful distribution of its securities that failed to comply with the resale restrictions of Rules 144 and 145 of the Securities Act."
CMKM Diamonds has said it is in the process of reinstating its reporting status.
Canadian securities regulators are also targeting the company. Last November, regulators in the province of Saskatchewan issued an order enjoining CMKM Diamonds president and large shareholder Urban Casavant, and two others from selling CMKM Diamonds shares without proper registration. That order, issued by the Saskatchewan Financial Services Commission, was originally scheduled to expire Nov. 9 but was extended until the commission receives "satisfactory information."
CMKM Diamonds has been the subject of several Dow Jones "In The Money" columns which highlighted its huge daily trading volume and the lack of information surrounding the company and its mineral claims.
-By Carol S. Remond; Dow Jones Newswires; 201 938 2074; carol.remond@ dowjones.com
Dow Jones Newswires
03-18-05 1212ET
Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.
