SEC Goes After MicroCap For Failing to Disclose Convertible Note Financing
Today, the SEC instituted cease-and-desist proceedings against Connexus Corporation (OTCPINK: CNXS) for failing to file 8-Ks and not properly disclosing financing transcriptions in its quarterly reports.
Among other things, Connexus sold convertible notes that, in aggregate, constituted an amount of common stock in excess of 570 percent of the last reported number of common stock issued and outstanding as of the date of sale. Connexus then failed to file a Form 8-K with the Commission within four business days of the sale of any of the convertible notes.
Connexus also failed to disclose financing agreements and the sale of unregistered equity securities, in its Form 10-Qs.
Connexus submitted an offer of settlement which the Commission determined to accept. Connexus shall pay civil penalties of $50,000.00, to the Securities and Exchange Commission in 10 equal monthly payments.
See the full order HERE.