Neptune: Investors artificially manipulated company's share price to affect debenture conversion price

By Devika Patel

Knoxville, Tenn., Sept. 26 - Neptune Industries, Inc. announced it has filed a complaint with the Financial Industry Regulatory Authority alleging misconduct and other violations by several South Florida individuals and brokerage firms, including manipulation of the company's stock price.

"On a number of occasions, it has been brought to our attention that certain individuals and firms may be working together to drive the price of the company's common stock below the conversion price of a convertible debenture note issued in a placement conducted on behalf of the company by the placement agent," a company spokesperson said in a press release.

"Furthermore, the company has been informed that certain shareholders have been advised that unspecified 'rumors' have been circulating regarding Neptune, and that information communicated to debenture holders by the same parties, without Neptune's knowledge, during the debenture offering may not have been accurate, when in fact the information contained in the company's offering documents and distributed as part of the offering was accurate.

"There are also indications that members of the firms involved may be shorting the common stock of the company, contrary to the interests of, and disclosures to, their own customers, who are now Neptune shareholders."

The company said in the release that it has no knowledge of the status or course of any pending FINRA investigation, which is handled on a confidential basis.

Neptune is a Boca Raton, Fla.-based fish farming company. Its shares (OTCBB: NPDI) closed at $0.10 on Friday. The shares were trading as high as $0.35 earlier this year.

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