Marley asks SEC to probe Jammin Java stock dealings
Published:Friday | September 16, 2011 | 12:00 AM
Rohan Marley this week urged United States authorities to prosecute any wrongdoer found to have unlawfully inflated the stock price of Jammin Java, a US-based coffee company under his chairmanship.
The stock traded at 60 cents Tuesday amid news of an ongoing "inquiry" by the US Securities and Exchange Commission (SEC).
"Jammin Java Corporation strongly condemns any activity that runs afoul of the securities laws and fair and honest dealing. We have fully cooperated with the SEC investigation and hope to see any wrongdoers identified and prosecuted to the fullest extent of the law," said a statement from Marley, posted to shareholders and authorities on Tuesday.
"We care deeply about our shareholders and will defend them and the company against any activity that threatens our reputation and shareholder value. We expect the hard work of our team and the quality of our product to be the only catalyst in the growth of our stock price over time," the statement read.
In May, a flurry of activity resulted in Jammin Java's stock price rocketing to US$5.42 with market capitalisation ballooning to more than US$500 million.
It was touted as the next big coffee brand in line with Fortune 500 Starbucks, despite recording revenues at the time of US$40,000. On Tuesday, the stock's market cap stood at US$46 million with a price of 60 cents.
In May, the company said it became aware that unauthorised Internet stock promoters were pushing short-term investments in the company's stock in 'stock reports' and on their websites.
Jammin Java, as a result, explicitly stated in its filing that it had "no knowledge of, or affiliation with, these stock promoters".
"Neither Jammin, nor anyone affiliated with the company, has participated in any 'pump and dump' or other unlawful scheme designed to unlawfully inflate the company's stock. Jammin expressly repudiates any such fraudulent conduct and strongly condemns any unlawful activity," Jammin Java said Tuesday.
The SEC asked Jammin Java to provide it with information and documentation in connection with its inquiry. The company responded to the SEC's requests and said it was otherwise fully cooperating with the SEC inquiry.
"In addition, pursuant to its own internal investigation performed by its outside counsel, Jammin has not found any evidence indicating that anyone associated with Jammin has been involved in an illegal stock promotion scheme or any other fraudulent activity," it added.
Jammin Java, still in its 'developmental stages', reported US$151,000 net loss in its latest annual report, a performance that was 16.7 per cent worse than the previous year, due to higher fees. The company's accumulated deficit stood at US$574,000; however, it recently secured US$2.5 million in working capital financing.