Electromedical Technologies, Inc. Issues Statement on Recently Identified Promotional Activity Concerning its Common Stock

Rhea-AI Summary

Electromedical Technologies, Inc. (OTCQB: EMED) addresses promotional activity regarding its stock initiated by Epic Stock Picks, which occurred on March 17, 2021. The company clarified it did not authorize or fund the promotion and has no involvement with Epic Stock Picks. Although trading volume increased post-promotion, the firm remains unacquainted with its impact. EMED is committed to educating the public about its FDA-cleared Wellness Pro™ product and emphasized the misleading nature of Epic Stock Picks' claims due to omission of significant risk factors from their communications.

Positive

• EMED's Wellness Pro™ product is an FDA-cleared Class II Medical Device.
• The company clarified its lack of involvement in promotional activities, aiming to assure investors.

Negative

• The company acknowledged that Epic Stock Picks did not include all material risk factors, potentially misleading investors.
• Past reliance on convertible notes raises concerns about future financing strategies.

SCOTTSDALE, Ariz., March 19, 2021 (GLOBE NEWSWIRE) -- ELECTROMEDICAL TECHNOLOGIES, INC. (OTCQB: EMED), a pioneer in the development and manufacturing of bioelectronic devices designed to relieve chronic, intractable and acute pains by using frequencies and electro-modulation, today issued the following statements regarding recent promotional activity concerning the Company’s common stock, which was first brought to the Company’s attention by OTC Markets. This press release is being issued as a result of a request from OTC Markets.

On March 17, 2021, OTC Markets contacted the Company concerning e-mail promotional activity regarding the Company’s common stock from a firm named Epic Stock Picks. The Company did not engage or pay Epic Stock Picks for any such promotion, and had no prior knowledge of the promotional activity by Epic Stock Picks. The Company was not involved in drafting the content published by Epic Stock Picks that was brought to the Company’s attention by OTC Markets. The Company has no direct or indirect knowledge of the effect, if any, that the promotion may have had on the trading of the Company’s common stock, although the volume of common shares traded increased on March 17.

The Company is engaged in efforts designed to educate the public about Bioelectronics, and the field of electronic medicine generally, and the benefits of the Company’s Wellness Pro™ product, which is an FDA cleared a Class II Medical Device, under the 510(K) clearance process. In this regard, the Company commissioned an analyst report by Mr. Robert Goldman. As to facts concerning the Company, its history, management, core business product, business plans, and the industry the Company operates in, the facts in Mr. Goldman’s report are true and correct and do not contain any false or misleading statements. Regarding Mr. Goldman’s opinions expressed in the article, they are his own, and the Company took no part in contributing to or informing Mr. Goldman’s independent opinions that he expressed in the article. After receiving notice from OTC Markets, the Company investigated, and determined that Mr. Goldman had no relationship with, or prior knowledge of, Epic Stock Picks’ email promotional activity concerning the Company. Mr. Goldman further did not engage or pay Epic Stock Picks for any sort of public relations, investor relations or marketing or promotional activity concerning the Company or its common stock. Furthermore, after independent inquiry, no third-party service provider, officer, director or controlling shareholder has been directly or indirectly involved in any way (including payment by a third-party), with the creation, distribution, or payment of promotional materials related to the Company and its securities.

The Company reviewed the Epic Stock Picks email provided by OTC Markets. As to the content attributed to Mr. Goldman’s opinions about the Company’s growth potential for the performance of its common stock, the Company has no basis to either affirm or disaffirm Mr. Goldman’s opinions. Regarding the other statements made by Epic Stock Picks in the example piece, the Company believes that Epic Stock Picks failed to include material information that would otherwise not make the statements made materially false and misleading. The piece is purely promotional in nature, and fails to include material information including, but not limited to, publicly disclosed risk factors in the Company’s SEC filings, that are material to any reasonable investor’s decision on whether or not to invest in the Company. Insofar as the Epic Stock Picks piece fails to include all material information, its statements are false and misleading.

To date, no Company officer, director, or third-party service provider, has sold any Company securities during the previous 90 days. One 10% shareholder has, over the previous 90 days, and consistent with the volume restrictions of Rule 144(e), sold 256,651 shares. These sales have been reported on Form 4 with the Commission. On February 17, 2021, the Company registered common stock on Form S-8, and, as disclosed to the Securities and Exchange Commission, the Company issued our principal executive officer 1.1 million common shares – none of which have been sold.

During the past 12 months, the Company retained PCG Advisory, Inc., XF Capital Holdings Corp., Digital Agency, Inc., Tiger Global Management to provide investor relations services, public relations services, marketing, or other related services including for the promotion of the Company or its securities. None of these entities are currently under contract or providing services to the Company.

In order to finance its operations, the Company has entered into convertible notes since reporting under the 1934 Securities and Exchange Act on August 6, 2020. The Company disclosed these notes in its most recent Commission filing on Form S-1, on pages 95-96 and 99-104, which may be accessed at the Company’s Edgar page using this link: https://www.sec.gov/Archives/edgar/data/1715819/000110465921028994/tm218017d1_s1.htm.

Electromedical Technologies, Inc. encourages those interested in investing in the Company to rely solely on information included in its authorized press releases and with its filings and disclosures made with the Securities and Exchange Commission (available on the SEC's website and on the Company’s website). All press releases issued by the Company are reviewed by outside securities counsel and confirmed by the Company for factual accuracy.

Corporate Contact:

Electromedical Technologies, Inc.
Matthew Wolfson
Tel: 1.888.880.7888
email: ceo@electromedtech.com
https://electromedtech.com

FAQ

What was the promotional activity concerning EMED's stock?

The promotional activity was initiated by Epic Stock Picks on March 17, 2021, without EMED's knowledge or consent.

How did Electromedical Technologies respond to the stock promotion?

EMED clarified it did not engage with Epic Stock Picks and has no involvement in their promotional content.

What is the significance of the Wellness Pro™ product for EMED?

The Wellness Pro™ product is significant as it is FDA-cleared, categorizing it as a Class II Medical Device.

What risks did Epic Stock Picks omit in their promotion of EMED?

Epic Stock Picks failed to include public risk factors disclosed in EMED's SEC filings, which are material to investor decisions.

What financial instruments has EMED previously relied on?

EMED has entered into convertible notes to finance its operations, raising concerns among investors about future funding.