The SEC Halted a Stock Over Virus Claims. Then the Company Got a PPP Loan
- Predictive Technology secured $1.7 million small-business loan
- SEC halted shares for two weeks over virus testing claims
Photographer: Justin Chin/Bloomberg
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A penny stock company received federal relief money to weather the pandemic two weeks after its shares were suspended by regulators who said it made misleading statements about its ability to distribute coronavirus antibody tests.
The U.S. Securities and Exchange Commission suspended trading in the shares of Predictive Technology Group on April 21 after questioning whether the company could, as it claimed, “immediately distribute large quantities of serology tests to detect the presence of Covid-19 antibodies,” according to the order.