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Highlights
- Upexi launches probe into stock manipulation after recent split.
- Significant increase in shareholders post-split raises concerns.
- Legal review focuses on trading activities by brokerage firms.
Upexi, a company in the Communication sector, has announced an investigation into potential stock manipulation following a recent reverse stock split. This development has caught attention due to unusual trading activities that emerged shortly after the reverse split took place. The company is actively examining these activities to determine if manipulation is at play.
Reverse Stock Split and Its Aftermath
The reverse stock split announcement by Upexi (NASDAQ:UPXI), which occurred in late September, was intended to consolidate shares and enhance the company's market standing. Following this announcement, a significant shift in the number of shareholders was observed. Prior to the split, Upexi had a relatively limited number of shareholders recorded, with less than 5,000 individuals holding shares. However, in the immediate period following the reverse split, the company noted a substantial increase in shareholder numbers.
Unusual Trading Patterns and Legal Review
The legal team at Upexi is scrutinizing the trading activities associated with this surge. It was reported that, after the split, five major brokerage firms requested a notable portion of the roundup shares issued during the post-split period. These firms collectively accounted for a significant percentage of the total shares requested in a brief trading window. Such concentrated activity led to a marked rise in the overall count of shareholders, raising red flags for the company’s legal and compliance teams.
Upexi’s legal representatives are now conducting a comprehensive review of the trading behavior linked to these requests. The objective is to identify whether these patterns constitute an attempt to manipulate the company’s stock price or shareholder structure. The company’s management is working to ensure that its stock remains protected from any activities that could impact its integrity in the market.
Company’s Stance and Legal Measures
Upexi remains firm in its commitment to maintaining transparency and upholding fair trading practices. The company’s leadership has emphasized the importance of understanding the full extent of the activities that have taken place during the post-split trading period. With its legal team actively engaged, Upexi is prepared to take any necessary action based on the findings of the investigation.
The focus of this review highlights the company’s proactive approach in safeguarding its shareholders and maintaining the trust of its stakeholders. By addressing these concerns head-on, Upexi aims to preserve the credibility of its stock in the broader market and ensure that any inappropriate actions are addressed promptly.
