An Arizona based technology company claiming to develop synthetic fuels, TRNX is no stranger to controversy. Formerly known as MagneGas (MNGA), it raised a few red flags back in 2015 when it was discovered that it’s auditor had been barred by the SEC for “falsified and backdated audit documents”, their owners at the time were spending 12 x times on insider compensation than on R&D, had accrued over $32 million and losses with dilution greater than 1,100% over a 9 year period, had a paid promotion to their name, among other things (1).
Since the beginning of the year they have changed their name, carried out a one-for-twenty reverse split, entered stock purchase agreement where over 3 milllion shares and warrants were issued, and used the services of Maxim Group LLC (2), an underwriter whose employee was subject to a lawsuit for excessive and unsuitable transactions causing $246,928 in damages (3) which was later settled (4).
Their transfer agent, Globex transfers was sued for a fraudulent transfer in 2017 (5).
Other curious findings concern the shareholders. Some of them have been involved with other companies whose shares have been subject to unusual price movements or other interesting occurrences. Firstly, we have Intracoastal Capital LLC and Anson Funds Management LP, who were/are shareholders in XSPA. XSPA is subject to an SEC investigation for share price manipulation accusation (6). Then there is CVI investments, who holds/held shares such as BPTH (whose price increased over 2,900% between February 28th and March 7th 2019) and CLRB (which was promoted in May 2016). Finally, Empery Asset Management who were/are also shareholder in BPTH and CREG (which was promoted in Nov 2017). Coincidentally, CVI Investments and Intracoastal are listed as selling shareholders in one of their recent S3 filings dated April 12th 2019 (7).
- (1) https://www.valuewalk.com/2015/12/magnegas-mnga/
- (2) https://www.otcmarkets.com/filing/html?id=13357257&guid=D4zIUp-vXMLS5th
- (3) https://www.securitieslawyersblog.com/maxim-group-financial-advisor-michael-solomon-subject-to-multiple-excessive-trading-complaints/
- (4) https://wolperlawfirm.com/maxim-group-just-settled-a-complaint-for-200000-based-on-alleged-misconduct-of-broker-michael-solomon/
- (5) https://www.pacermonitor.com/public/case/23242975/Gladstone_v_Globex_Transfer,_LLC
- (6) https://www.scribd.com/document/415193327/XpresSpa-market-manipulation-letter-to-Judge-Stanton-July-1-2019-XSPA
- (7) https://www.otcmarkets.com/filing/html?id=13358524&guid=Z7zIUpU9HziTgth#FORMS-3_HTM_A_005