Newgioco Group, Inc. Issues Statement About Promotional Activity Concerning Its Common Stock
NEW YORK, NY / ACCESSWIRE / October 3, 2017 / Newgioco Group, Inc. (OTCQB: NWGI) ("Newgioco" or the "Company") a leisure betting technology company providing regulated lottery and gaming products and services through licensed subsidiaries based in Europe, has been requested by OTC Markets Group Inc. ("OTC Markets") to issue this statement about promotional activity concerning its common stock.
On Friday, September 29, 2017, OTC Markets informed the Company that it became aware of certain promotional activities concerning Newgioco and its common stock traded on the OTCQB Marketplace, including the distribution of promotional newsletter emails encouraging investors to purchase the Company's common stock. OTC Markets provided examples of the promotional material for reference. The Company understands this promotional activity coincided with increased trading activity in the Company's stock beginning on or about September 28, 2017. Until being informed by OTC Markets of the promotional material, the Company was unaware of the promotional activity, and is unaware of the full nature of the promotional activity, the extent of the dissemination, or the responsible parties.
The Company immediately initiated an internal investigation into this matter and made inquiries of its executive officers, directors, controlling shareholders (i.e., shareholders owning 10% or more of the Company's securities, of which there is one) and third-party service providers. Neither the Company, nor its executive officers, directors nor, to the Company's knowledge, its controlling shareholders nor third-party service providers, were involved in any way with the creation or distribution of promotional materials including these email newsletters. Additionally, neither the Company's executive officers, directors nor, to the knowledge of the Company, any controlling shareholders except as outlined below, or any third-party service providers, sold or purchased shares of Common Stock of the Company within the past 90 days that would be disclosed on Form 4 within the two day time period as required by securities laws. Further, the Company has not, other than disclosed in its periodic reports filed with the Securities and Exchange Commission, issued any shares or convertible instruments allowing conversion to equity securities at prices constituting a discount to the current market rate at the time of the issuance.
As disclosed in its periodic reports filed with the Securities and Exchange Commission, the Company's sole controlling Shareholder is Gold Street Capital Corp. ("Gold Street") a company owned by Gilda Ciavarella, the spouse of Company Chairman and CEO, Michele Ciavarella. Gold Street advises the Company that it has entered into various investments, professional consulting services, and banking agreements in the ordinary course of its independent private business practice including the deposit of its holdings of the Company's common stock from time to time in stock brokerage accounts pursuant to safe harbor exemptions set forth in Rule 144. Between August 2015 and October 2016, Gold Street reported shares acquired and disposed of on SEC Form 3 and Form 4 as well as additional shares that have been acquired up to date on the Company's periodic reports filed with the Securities and Exchange Commission. Since January 1, 2016, the Company has engaged various independent, professional third-party firms including Barwicki Investor Relations, Remark Financial Communications, ACCESSWIRE, PR Newswire, Globenewswire (NASDAQ, Inc.), Businesswire, Infront Sports, LD Micro, Levologic, Singular Research (Solaris Select) and, although no work product has been completed to date, has currently entered into an agreement with Worldwide Financial Marketing effective September 1, 2017 as its sole provider of investor relations services, public relations services, marketing, or other related services. In addition, the Company has also entered into various investment banking, financing services and consulting services agreements with Advicorp PLC (London, Rome), Arietti and Partners (Bologna), Almorli Capital, Wellfleet Partners (Aracle Capital), Merriman Capital, National Securities, Newbridge Securities, JH Darbie, Dundee Securities, Echelon Wealth Management and Dominick, Inc. (Canada). Other than the firms listed, the Company has not engaged any other third-parties to provide marketing services and has not engaged any other third-parties to provide investor relations services, public relations services, or other related services.The Company is not affiliated in any way with the authors of the promotional newsletters identified by OTC Markets which largely appear to be reproductions and redistributions of recent press releases containing factual information about various developments and the business of the Company and that are available on the OTC Markets website, as well as various screenshot images from our corporate website www.newgiocogroup.com and our operational website www.newgioco.it and www.odissea.at. The promotional newsletters also added misleading emphasis and sensational statements to the Company's factual information. Certain statements contained in the promotional materials as provided to the Company by OTC Markets may be materially false and/or misleading.
"Whenever possible, the Company has followed the Promotion Policy guidelines of OTC Markets, best practices and disclosure requirements of the Securities and Exchange Commission, issued press releases related to Company developments and investor relations campaign, and maintains Internal Controls and a strict Insider Trading Policy which is posted on the Company's corporate website," stated Company Chairman and CEO Michele Ciavarella. "We encourage those interested in the Company to rely solely on information included in press releases issued and distributed by the Company via approved newswire or Disclosure & News Services combined with its filings and disclosures made with the Securities and Exchange Commission as well as information provided through the OTC Markets and available on their websites: www.sec.gov and www.otcmarkets.com, respectively."
About Newgioco Group, Inc.
Newgioco Group, Inc., together with its wholly owned subsidiaries, is a fully integrated, licensed gaming technology company. The company conducts its business primarily through retail neighborhood betting shops and internet-based betting software platform under the registered brand Newgioco through our licensed website www.newgioco.it situated in Italy.
The company offers its clients a full suite of leisure gaming products and services, such as sports betting, virtual sports, online casino, poker, bingo, lottery, interactive games and slots, as well as an innovative betting platform (www.odissea.at) providing both B2B and B2C bet processing. Additional information is available on our corporate website at www.newgiocogroup.com.
This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "forecast," "plans," "intends," "potential" and similar expressions. These statements reflect the company's current beliefs and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements.
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SOURCE: Newgioco Group, Inc.