The U.S. Securities and Exchange Commission announced Wednesday the temporary suspension of trading Medient Studios’ stock.
According to the notice, the SEC is temporarily suspending trading in the securities of Savannah-based Medient, ticker symbol MDNT, because of concerns about the company’s financial health.
The suspension went into effect at 9:30 a.m. Wednesday and ends at midnight on July 9.
“The Commission temporarily suspended trading in the securities of MDNT because of questions that have been raised about the accuracy and adequacy of publicly disseminated information concerning, among other things, the company’s total shares outstanding and its operations,” said the press release.
This follows a wave of problems that have come to light after the company fired its founder and CEO Manu Kumaran and several other former staff and consultants. Kumaran on Monday filed a lawsuit against the current board of directors and new CEO Jake Shapiro seeking to dissolve the company.
Medient Studios finalized an agreement last August with the Effingham County Industrial Development Authority to build a $90 million mega-studioplex on land it owns off Old River Road.
Representatives for Medient have so far declined to comment this week.
David O’Hearn, a local investor in Medient, said this essentially means his shares are now worthless.
“The investors in Medient have been waiting to hear where the new management is taking the company, and apparently our patience was superceded by the SEC’s interest,” said O’Hearn.
According to William Hicks, associate director for enforcement at the SEC’s Atlanta office, Medient will have to make updated information available to the brokerage industry to come into compliance.
The SEC is advising brokers, dealers, shareholders and prospective purchasers that they should “carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company.”