News Column

Trading suspended as profitless tech firm's shares rise pounds 25,000%

July 12, 2014

Dominic Rushe New York



Financial regulators in the US suspended trading yesterday in a social networking company with no assets, no revenues and one employee, whose value on the stock market soared to $6bn in a matter of weeks.

Fuelling talk of another dotcom bubble, shares in a previously unknown Belize-based tech firm, Cynk, rose 25,000% since the middle of June before they were suspended yesterday morning before the start of trading in New York.

The Securities and Exchange Commission (SEC) said the suspension had been made "because of concerns regarding the accuracy and adequacy of information in the marketplace, and potentially manipulative transactions in Cynk's common stock".

The stock's runaway rise had made the profitless company more valuable than Domino's Pizza, JetBlue or Spotify - even as a chorus of critics cited mounting evidence that there was little substance behind the company.

Valued at six cents a share in June, Cynk finished trading on Thursday valued at $14, having reached as high as $21.

The rise has made a paper billionaire of Marlon Luis Sanchez, the chief financial officer, chief accounting officer, secretary, treasurer and director.

Sanchez, a partner in Sanchez Medical Services, is also primary spokesperson for the Medical Tourism Industry counsel in Tijuana, Mexico. Calls to the office of Sanchez Medical Services went unanswered.

Cynk's main business is introbiz.com, a website which markets itself as somewhere to "buy and sell the ability to socially connect to individuals such as celebrities, business owners, and talented IT professionals". The front page features a host of stars, including Angelina Jolie, Channing Tatum and Johnny Depp, although there is no evidence the stars have ties to the business.

"Cynk Technology Corp believes its planned social network may disrupt an inefficient model of meeting people," the company told the SEC.

$6bn

Value of profitless Belize-based tech firm Cynk after stocks rose 25,000% before trading was suspended



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Source: Guardian (UK)


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