NuGene International Inc (OTCBB:NUGN) a manufacturer, marketer and developer of advanced skin and hair care products announced that it has been said by the OTC Markets Group to explain on recent trading and promotional activity associated with NUGN common stock.
On June 8, OTC Markets Group informed NuGene that it has become aware of some of the promotional activities related to the company’s stock. It covered several promotional measures including a mailer written by MicroCap Marketplace endorsing the Company and inspiring investors to buy NUGN shares.
The mailer’s disclaimer also highlighted that a non-management affiliated party shareholder of the NuGene created and circulated this “advertisement.“ This promotional measure was recorded at a time when the trading volume in company’s stock was more than average and also witnessed high volatility. The company said that they are not aware of the content and full nature of ongoing promotional activity, and also who else may be accountable and the extent of its propagation.
NuGene said that neither the company, nor its directors, nor its management, nor other controlling shareholders are related with promotional mailers which promote the company or which promote investors to buy NUGN shares. However, the company confirmed that to its knowledge none of directors or management two of whom are controlling or principal shareholders purchased or sold NUGN securities within the past thirty days.
Ali Kharazmi, the CEO said that for the record, NuGene has no PR/IR program in process and is not connected with the promotional materials’ writer or its affiliated persons or entities. Recent press releases have released and provided disclosure of ongoing and legitimate corporate measures only, and is not part of any promotional campaign.
NuGene International Inc (OTCBB:NUGN) had a considerable gain of 22.61% in the last trading session of the week but in the context of the crash it suffered in the previous session, it didn’t look much. The average volume has increased quite a bit in the recent days with the general volume increasing and the volume of 899,000 yesterday hasn’t been able to beat that average of 920,000. Even after this bounce, the stock still has to gain about 42% to get back to the last week’s high at $4.54. The major support area around $2.50 must be protected by the bulls to keep their hopes alive.