SUMMARY
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MANILA, Philippines – The Philippine Stock Exchange (PSE) urged minority shareholders of Abra Mining Industrial Corporation to seek legal advice on available legal remedies, as the local bourse operator moves to delist the company following findings by regulators that the company engaged in trading fraud.
The Securities and Exchange Commission (SEC) earlier found the Beloy family-led company and its officers of engaging in fraudulent trading of unissued and unlisted shares from 2015 to 2019. The SEC also found officers issued shares for less than their par or issued price.
The PSE suspended the trading of Abra Mining shares in March 2021. It said it would remain suspended while the involuntary delisting procedures are initiated.
In January 2021 or before the trading suspension, shares of Abra Mining jumped to P0.013 a piece, a 1,525% increase from its usual price in recent years. At one point, fluctuations became so intense that it accounted for 80% of the Philippine market’s average daily transaction volume, as pointed out by Rappler stock market columnist Den Somera.
This raised red flags, as the company basically had no income and not a single stock market analyst monitored the company. The price movement, at best, was on the back of speculations that it would develop its gold mines.
According to the conglomerate map posted on its website, Abra Mining has a sister company named Kadabra, and together, they formed a company called AbraKadabra Goldfields Corporation, which is supposedly in the process of SEC registration.
The local bourse operator pointed to Republic Act No. 11765 or the Financial Products and
Services Consumer Protection Act (FPSCPA) for minority shareholders to cite, as it aims to provide protection to financial consumers against fraudulent practices and provide them with an expeditious remedy for enforcement of claims.
“SEC has authority to adjudicate complaints under FPSCPA such as damages not exceeding P10 million,” the PSE said. – Rappler.com
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