ENHD closed the last trading session losing 65% of its value in a day. The stock tanked to $0.44, which is the lowest price for the past two years, and got a volume of 1.85 million shares, the highest volume in the entire trading history of the stock. The dramatic event that caused the sell-off appears to be the latest and maybe one of the last SEC filing of Energroup Holdings published early in the morning.
ENHD field a notice of termination of the registration of its common stock with the commission, and respectively the suspension from the duty to file regular financial reports. The notice is filed under SEC Rule 12g-4(a)(1) and the company states that the number of shareholders of record as of the date of the filing is 173, namely less than 300 as the rule requires.
The shareholders’ panic reaction may not be surprising and it looks like ENHD decision is raising doubts and speculations that the company has something to cover, a good way of doing so being to hide in the Pink Sheets where the disclosure of financial reports is not a must. Energroup Holdings’ decision to de-register its shares looks even stranger on the fact that the management has not by now made any official statements to explain its actions.
The latest financials of ENHD did not look suspicious as the company had a good balance sheet with a strong cash position and no long-term debt. The revenues and the profits looked stable, but still that last 10-Q was not as positive for the market as ENHD share price was on a constant decline after the report was filed.
