Instadose Pharma Corp. (INSD) Misled Investors Causing a Halt in Trading
A shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired Instadose Pharma Corp. (OTC: INSD) securities between December 8, 2020 and November 24, 2021, for violations of the Securities Exchange Act of 1934. Instadose was formerly known as Mikrocoze, Inc. (OTC: MZKR), which was organized to sell micro-furniture for small spaces via the Internet. The Company has pivoted its business to focus on growth and acquisition of pharmaceutical grade agricultural products.
According to the complaint, on December 7, 2020, Instadose (still known as Mikrocoze) entered into a non-binding letter of intent with Instadose Pharma Corp., a Canadian-based cannabis producer, and holders of a majority of its outstanding shares. On July 9, 2021, the Ontario Securities Commission (“OSC”) announced that the Chairman and Chief Executive Officer (“CEO”) of Instadose was charged quasi-criminally with one count of fraud. The OSC alleged that the CEO diverted investor funds for his benefit and that Instadose materially misrepresented the nature of its business.
Then, on November 24, 2021, in a filing with the SEC, Instadose disclosed that “[o]n November 23, 2021, the Company was notified by the SEC that it had ordered … that trading in the securities of [Instadose] is suspended for the period from 9:30 a.m. EDT on November 24, 2021, through 11:59 p.m. EDT on December 8, 2021.” The SEC’s order stated that “it appears to the [SEC] that the public interest and the protection of investors require a suspension in the trading of [Instadose] securities … because of questions and concerns regarding the adequacy and accuracy of information about Instadose … in the marketplace, including: (1) significant increases in the stock price and share volume unsupported by the company’s assets and financial information; (2) trading that may be associated with individuals related to a control person of Instadose…; and (3) the operations of Instadose’s Canadian affiliate.” When the stock began trading again on December 9, 2021, the Company’s stock price fell $22.61 per share, or almost 92%, to close at $2.00 per share on December 9, 2021.
If you purchased shares of Instadose Pharma Corp. (INSD) between December 8, 2020 and November 24, 2021, you have until February 28, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.