FCMC requires delisting of AS Baltic Technology Ventures’ shares from “First North”

08.09.2021
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The Financial and Capital Market Commission (FCMC) has established that AS Baltic Technology Ventures infringed Article 15 of Regulation No 596/2014, thereby the FCMC's Board decided to impose an obligation on AS Baltic Technology Ventures to repay part of income made as a result of the infringement of the Regulation in amount of 50 000 euro, to impose a fine of 66 694.31 euro on Gene Zolotarev, the board member of AS "Baltic Technology Ventures", as well as to delist AS Baltic Technology Ventures' financial instruments from the stock exchange First North alternative market.

The FCMC found that AS Baltic Technology Ventures had committed breaches of requirements of Article 15 of Regulation No 596/2014 on market abuse over a period from 13.08.2020 to 06.05.2021.

On 13.08.2020, AS Baltic Technology Ventures published an interim report 2020 for the first six months of accounting year, presenting intangible investments of 73 249 854 euro on its balance sheet. On 06.05.2021, AS Baltic Technology Ventures’ audited financial report for 2020 was published, and its balance sheet no longer reflected intangible investments while the total amount of assets made up only 64 041 euro. Such significant changes in the balance sheet were related to unjustified inclusion of intangible investments of 73 249 854 euro in the AS Baltic Technology Ventures’ interim report 2020 for the first six months of accounting year.

Article 12(1)(c) of Regulation No 596/2014 provides that market manipulation is disseminating information, which gives, or is likely to give, false or misleading signals as to the price of several financial instruments or ensures or may ensure the share price at an inappropriate or artificial level. Article 15 of Regulation No 596/2014 provides the prohibition of market manipulation.

Over the period from 13.08.2020 to 06.05.2021, when misleading information was available to investors about the assets reflected on the balance sheet of AS Baltic Technology Ventures, the first secondary public offer of shares was implemented, resulting in raising public funds of 380 000 euro, as well as transactions in shares of AS Baltic Technology Ventures on the stock exchange alternative market.

The FCMC found Gene Zolotarev, the board member of AS Baltic Technology Ventures, responsible for infringements of Article 15 of Regulation No 596/2014 committed by AS Baltic Technology Ventures.

On 7 September, the Board of the FCMC decided to require the delisting of AS Baltic Technology Ventures financial instruments from the multilateral trading facility First North organised by Nasdaq Riga.

Also, the Board of the FCMC decided to impose an obligation on AS Baltic Technology Ventures to repay the part of income obtained as a result of infringements of Regulation No 596/2014 in amount of 50 000 euro in the State budget and impose a fine of 66 694.31 euro on Gene Zolotarev for infringements of Regulation No 596/2014.

 

Further information:
Airisa Ādamsone
Public Relations Specialist
FCMC’s Communications Division
Phone: +371 67774807
E-mail: airisa.adamsone@fktk.lv

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