Lotus Bio-Technology Development Corp. Releases Shareholder Update Addressing Securities and Exchange Commission's Complaint
Lotus Bio-Technology Development Corp. (LBTD) released a shareholder update on August 29, 2022, addressing an SEC complaint from August 15 involving past insider trading allegations against a former officer, which new management was unaware of. The company is conducting an internal investigation, ensuring no current management is implicated. Plans to enhance compliance and reporting practices include hiring a new securities attorney and changing transfer agents. Despite past issues, the new CEO, Hoyt Christopher, expresses confidence in the company's revenue and management.
- New management has no ties to past misconduct, ensuring a fresh start.
- The company is implementing stronger compliance measures, including hiring a seasoned securities attorney.
- Change of transfer agents to enhance transparency and reduce risks of insider trading.
- Ongoing SEC complaint poses reputational risks.
- Allegations of insider trading could create investor concerns despite no current management involvement.
IRVINE, Calif., Aug. 29, 2022 /PRNewswire/ -- Lotus Bio-Technology Development Corp. (Pink Open Market:LBTD) releases shareholder update today addressing the following four items:
1. The SEC's August 15th, 2022 complaint concerning activities in Lotus Bio-Technology Development Corp.
2. The Company's status regarding an internal investigation on the matter.
3. The Company's plans to implement policies, procedures, and other safeguards to minimize risk of future concerns described in the SEC's complaint.
4. A summary of the Company's current compliance procedures concerning proper reporting of insider transaction activity.
Item 1: On August 15th, 2022, the SEC filed a civil complaint involving a former officer and director of Lotus Bio-Technology Development Corp. The alleged activities of insider trading of Company stock and other illegalities cited in the complaint are from several years ago and do not involve any current management or team members. However, new management is shocked by the allegations set forth in the complaint. Had they been aware of these allegations, new management would not have merged their business with LBTD. However, the Company wishes to address these circumstances with transparency so they can continue thriving in the digital health and wellness market.
Lotus Bio-Technology Development Corp.'s new CEO Hoyt Christopher commented, "We will always strive to manage our business in a way that is both moral and ethical. Our team exemplifies integrity and we will continue building our company in a way that honors these principles."
Item 2: The Company's new management has conducted an internal investigation and has ensured that none of the parties mentioned in the SEC complaint are involved with any aspect of business in Lotus Bio-Technology Development Corp. moving forward. Additionally, before this complaint was filed, there had already been a change of control and management with the former CEO agreeing to surrender 150,000,000 shares of common stock to the treasury.
Item 3: The Company is hiring a securities attorney who can, and will, help oversee all compliance issues for the Company moving forward. This attorney will have absolutely no ties to the former business, nor former management and will add great value in offering guidance that will safeguard the Company and its shareholders.
Furthermore, the Company will go beyond current reporting requirements and voluntarily disclose to OTC Markets and the public any and all stock transactions.
Item 4: Effective September 2nd 2022, the Company is changing transfer agents to ensure there is no connection to prior activity. With the Company's new transfer agent and new securities attorney on retainer, the Company will not only keep track of all share transfers and make sure there is no insider transaction activity taking place, but also ensure that no illegitimate previous actions will affect the longevity and success of the Company and the Company's shareholders.
Lotus Bio-Technology Development Corp.'s new CEO, Hoyt Christopher, commented, "We have a remarkable business with incredible revenue and an extremely competent management team. We have carefully designed our business in such a way that we feel confident success is our only option. We appreciate our shareholders and look forward to growing our business exponentially to increase shareholder value."
More information about our new business operations can be found at: boomerangkit.com
Safe Harbor Statement: This press release contains "forward-looking statements." Although the forward-looking statements in this release reflect the good faith judgment of management, forward- looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements.
Readers are urged to carefully review and consider the various disclosures made by LBTD in our reports filed with OTC Markets Group, Inc., including the risk factors that attempt to advise interested parties of the risks that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.
Contact:
David Ottestad, Creative Director Email: ir@boomerandgkit.com
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SOURCE Boomerang Corp
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