Latvia’s financial regulator, the Financial and Capital Market Commission (FKTK) announced September 8 that JSC “Baltic Technology Ventures” must be delisted from the First North alternative investment market, demanded repayment of money made as a result of breaching regulations and imposed a fine on board member Gene Zolotarev.
FKTK said in a statement the company had “during the period 13.08.2020 until 06.05.2021 infringed Article 15 of Regulation (EU) No 596/2014 on market abuse.”
“Therefore the FKTK Council has decided to oblige JSC “Baltic Technology Ventures” to repay the part of income gained as a result of violation of the requirements of the regulation in the amount of 50,000 euros, to impose a fine of 66,694.31 on Gene Zolotarev, Member of the Board of JSC “Baltic Technology Ventures” as well as to request that the financial instruments of JSC “Baltic Technology Ventures” be delisted from the alternative market First North,” it added.
According to FKTK, the company published an interim report for the first six months of 2020 that included a balance sheet reflecting intangible investments worth more than 73 million euros, but when its audited financial report for 2020 was published this year, the balance sheet no longer reflected intangible investments and the total amount of assets was only 64,041 euros.
Such significant changes in the balance sheet are related to the inclusion of unjustified intangible investments of JSC “Baltic Technology Ventures” in the amount of EUR 73,249,854 in the interim report for 2020 for the first six months of the reporting year.
Under the quoted regulations, market manipulation is the dissemination of information which gives or is likely to give false or misleading indications as to the price of a financial instrument or provides or may provide an inappropriate or artificial share price.
In the regulator’s view, during the period between the two financial reports, investors had access to misleading information about the assets reflected in the balance sheet of JSC “Baltic Technology Ventures”.
As a result of the regulatory action, trading in the company was immediately suspended and all order books flushed.