MMC Energy alleges investor allowed resale of shares issued in May 2006 PIPE

By Sheri Kasprzak

New York, Feb. 20 - MMC Energy, Inc. said it believes that the former partner of MMC's external legal counsel for a May 2006 PIPE may have caused the shares sold in that transaction to be illegally resold.

MMC alleges that Louis Zehil improperly caused the company's transfer agent to not place a required restrictive legend on the certificate for 1 million of 12 million shares sold in the placement and that Zehil may have caused the entity to resell some or all of the shares.

"MMC learned of these circumstances with its work on a registration statement to permit resale of the shares issued in the private placement," MMC said in a news release Monday.

"MMC has reported this matter to the Securities and Exchange Commission and is working with its advisors to track the 1 million shares and take other action as may be appropriate."

Zehil did not respond to requests for comment on the allegations by press time Tuesday.

New York-based MMC is an energy acquisition company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.