InnerScope Hearing Technologies, Inc. Issued statement About Promotional Activity Concerning Its Common Stock(06:30 Hrs. IST)
ROSEVILLE, Calif., Dec. 7, 2017 /PRNewswire/ -- InnerScope Hearing Technologies Inc. (OTCQB "INND"), (the "Company" or "InnerScope") announced today that it has been made aware of and requested by the OTC Markets Group, Inc. ("OTC Markets") to comment on recent trading and promotional activity concerning its common stock.
On December 5, 2017, OTC Markets informed the Company that it became aware of certain promotional activities concerning the Company and its common stock. OTC Markets informed the Company that it had become aware of promotional literature encouraging investors to purchase the Company's common stock. The Company has been informed that this promotional activity coincided with higher than average trading volume in the Company's stock. The Company was unaware of the promotional activity until informed by OTC Markets on December 5, 2017, and is unaware of the identity and scope of these efforts by unaffiliated third parties. The Company is not aware of the extent of the promotional activity or the extent of its dissemination.
The Company was, and is not aware of the effect of the unauthorized promotional activities, if any, on the trading activity of InnerScope's common stock. The Company has previously issued over the preceding several weeks press releases and reports regarding the opening of its e-commerce store and its name change. The Company was also featured in the magazine "The Hearing Review." Additionally, the Company also believed that any increase in trading activity was the result of the Company hiring a third party, CorporateAds.com, to produce a flyer highlighting the various avenues for revenue generation being pursued by the Company. This flyer contained only content from Company press releases, however, the Company did not retain full editorial control over the final product. CorporateAds.com was initially retained for 15 days with an automatic six-month extension that expired by the end of October.
After direct and diligent inquiry, the Company can definitively state that the Company, its officers, directors and, to the Company's knowledge, its controlling shareholders (i.e., shareholders owning 10% or more of the Company's securities) and third-party service providers have not, directly or indirectly, authorized or been involved in any way (including payment to a third-party) with the creation or distribution of promotional materials regarding the Company or its securities, outside of those produced by CorporateAds.com.
As part of the OTC Markets' Group inquiry, the Company has been asked to disclose all transactions by any officer, director, controlling shareholder (defined as owning 10% or more of the outstanding stock), and any third- party service providers. Below is a summary of two transactions involving third party service providers within the last 90 days.
After inquiry, CorporateAds.com stated that it sold 165,000 shares it beneficially owned. CorporateAds.com represented that this sale occurred within the last 30 days.
On October 27, 2017, MD Capital Advisors privately sold 980,000 shares it beneficially owned by it to Paladin Advisors, LLC. This sale predates the existence of the unauthorized promotional items.
Outside of the consultants named above, the Company, its officers, directors, and all controlling shareholders (shareholders owning 10% or more of the Company's securities), have not sold or purchased the Company's securities within the past 90 days.
As of December 1, 2016, CorporateAds.com, and MD Capital Advisors are the only entities engaged by the Company to provide investor relations services, public relations services, marketing, or other related third- party services to the Company, including the promotion of the Company or its securities.
Within the last 90 days, the Company has issued two (2) convertible instruments allowing conversion of a promissory note into equity securities. These convertible instruments were issued to the following parties:On October 5, 2017, the Company issued a convertible note to Power Up Lending Group LTD. This note was a $48,000 convertible note, carrying 12% interest and convertible at the option of Power Up Lending Group LTD. The note contemplates a conversion rate at 35% discount to the average of the two lowest closing bid prices for the 20 trading days preceding the day of conversion. As of December 7, 2017, the note has not been converted into equity and no shares have been issued. On November 10, 2017, the Company issued a convertible note to Carebourn Capital, L.P. This note was a $299,000 convertible note, carrying 10% interest and convertible at the option of Carebourn Capital, L.P. The note contemplates a conversion rate at 35% discount to the lowest closing bid price for the 20 trading days preceding the day of conversion. As of December 7, 2017, the note has not been converted into equity and no shares have been issued.
The Company believes there were no materially false statements in any of the promotional materials, but a reader may be mislead by the projected gains that were based on the actual trading prices. The Company encourages those interested in the Company to rely solely on information included in its press releases combined with its filings and disclosures made with OTC Markets and the Securities and Exchange Commission (available on the SEC's website). We thank OTC Markets for their openness and consideration to the investors of InnerScope Hearing Technologies, Inc.
About InnerScope Hearing Technologies (INND):
InnerScope Hearing Technologies (INND) is a technology driven company with highly scalable B2B and B2C solutions. The Company offers a B2B SaaS based Patient Management System (PMS) software program, designed to improve operations and communication with patients. INND also offers a Buying Group experience for audiology practice, enabling owners to lower product costs and increase their margins. INND will also compete in the DTC (Direct-to-Consumer) markets with its own line of "Hearables", and "Wearables" and revolutionary APPs on the iOS and Android markets.
INND has plans on opening, operating and expanding a chain of audiological and retail hearing device clinics. INND's seasoned team of professionals, with collectively over 200+ years of experience in the hearing aid industry, including successful operations in hearing aid manufacturing and retail store management. Our team has the knowledge, relationships, and the experience to quickly deploy new products and software to serve the over 360 million people around the globe that are hearing impaired. For more information, please visit www.innd.com
This presentation contains forward-looking statements which relate to future events or InnerScope Hearing Technologies future performance or financial condition. Any statements that are not statements of historical fact (including statements containing the words "believes," "should," "plans," "anticipates," "expects," "estimates" and similar expressions) should also be considered to be forward-looking statements. These forward-looking statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as result of a number of factors, including those described from time to time in InnerScope Hearing Technologies filings with the Securities and Exchange Commission. InnerScope Hearing Technologies undertakes no duty to update any forward-looking statements made herein.
SOURCE InnerScope Hearing Technologies Inc.