CYNK Technology was the biggest story of the day.
Shares of the company, which was worth more than $US5 billion at one point, closed at $US13.90, about 5% below where they closed yesterday to give the company of a market cap of just over $US4 billion.
A number of media outlets reported on CYNK during the day, but when it was all over, there were still a number of huge questions surrounding the company.
First: who is in charge?
According to CYNK’s last filing with the SEC, which also said the company would no longer be filing financial reports with the SEC, the company’s CEO is listed as Miguel Luis Sanchez.
Attempts by Business Insider to contact Sanchez by phone were unsuccessful. The Wall Street Journal, however, reported that it reached Sanchez via email, Sanchez told the paper, “I am no longer associated with [CYNK Technology] in any way shape or form.”
In filings made with the OTC Market, the company lists Javier Romero as its CEO, saying that Sanchez resigned as CEO of the company on February 20 of this year. The aforementioned SEC filing was filed April 10.
The OTC filings also indicate that Romero owns 210 million shares of the company, or 72% of the outstanding shares.
Here’s what we know about Romero, per the company’s filing with the OTC Market.
It seems Romero, like Sanchez before him, serves as not only the company’s CEO, but also its president, secretary, treasurer, director.
Calls by Business Insider to the law firm representing CYNK Technology, as well as to a number listed with the company’s office in Belize were not returned.
But CEO change at the company is not a new phenomenon.
Sanchez stepping away from CYNK makes him the third CEO, who also served as the company’s only employee, to walk away.
Kenneth Carter, who goes by “Kenny Blaque,” was formerly the CEO and sole employee of CYNK Technology, then known as Introbuzz, when the company filed an S-1 with the SEC announcing its intent to go public.
And screenshots from Carter’s Facebook page — obtained by BI’s Julia LaRoche — dated February 12, 2013, or about a year after the company filed an S-1 with the SEC announcing its intent to go public, suggest Carter was excited about the debut.
BuzzFeed’s Matt Zeitlin spoke to Carter, who suggested that he was involved with taking the company public, but told Zeitlin that he hasn’t received any money from his affiliation with the company.
Bloomberg’s Julie Hyman, however, reported on Bloomberg TV that Carter said he wasn’t associated with the company when it went public. Hyman added that Carter “professed surprise” that his name was on the documents detailing the company’s intent to go public.
Hyman added that Carter told her he hasn’t met Sanchez, or John Kueber, the first CEO of the company, according to OTC Market filings.
According to a summary of the stock’s ownership from the company’s filing with the OTC Market, it appears that Carter’s 6 million shares were cancelled after he resigned on April 17, 2013.
In a separate interview with CNBC, Carter said he, “resigned from the company because of the players.”
The company’s S-1, however, clearly indicates that Carter was the company’s CEO, CFO, accounting officer, secretary, treasurer and director at the time of the filing.
Beyond the corporate control questions, however, there is still the pesky question of just who is buying and selling the stock.
Despite considerable media buzz today, the stock still traded just 386,000 of its 291 million outstanding shares. And even if one assumes that Romero isn’t trading at all, there are still 81 million shares outstanding.
And again, let’s not forget, the company has no revenue and no assets.
Late in the day StreetInsider, citing sources, said regulators were looking at trading activity in CYNK, adding that a trading halt “could be imminent.” So far, nothing has happened from a regulatory standpoint.
It seems that after a 25,000% gain, regulators might wonder what is going on. But CYNK Technology trades over the counter, or on an unregulated market where companies aren’t held to same reporting standards as those that list on the New York Stock Exchange or Nasdaq.
Naturally, the massive rise of CYNK in both investor awareness and its share price, had many on Twitter talking about CYNK and if it possibly signals another bubble.
Probably not, but how this story unfolds, and what happens to the stock now that it has the markets attention, bears watching no matter what happens next.
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