Reliq Health Technologies Inc V.RHT.H

Mathieu Martin - Stocks and Stones - The Good, The Bad......

[Possibleidiot01]

The Ugly

1. It was a record month for bankruptcies in the Canadian microcap market, as access to capital remains challenging for struggling issuers. Notable failures include Valeo Pharma (TSX: VPH), Arht Media (TSX-V: ART), Vicinity Motor (TSX-V: VMC), Statehouse Holdings (CSE: STHZ), Select Sands (TSX-V: SNS), Chesswood Group (TSX: CHW) and Earth Alive Clean Technologies (TSX-V: EAC). In a similar vein, Axis Auto Finance (TSX: AXIS) announced a business liquidation (leaving nothing for shareholders), and Oceansix Future Paths (TSX-V: OSIX) announced a strategic review process. The market is cleansing itself.

2. Remember Reliq Health Technologies (TSX-V: RHT)? They'd been caught billing uncollectable invoices and recording false revenues in 2017-2018. A few years later, their CEO, Dr. Lisa Crossley, started promoting the stock again by touting how Reliq would become a billion-dollar Nasdaq-listed company. Well, it didn't exactly work out as planned. The company experienced delays in filing its 2023 financial results, followed by the unexpected resignation of Dr. Crossley in late 2023. The stock has been halted since January 2024, and no financials have been filed. Something smelled fishy. The other shoe finally dropped recently when Dr. Crossley filed hundreds of insider transactions on SEDI covering 2021 to 2023. She exercised millions of options and actively traded the stock in the market, including on days before earnings releases, without ever disclosing it. She was publicly pumping the stock and misleading shareholders while cashing in on what looks like millions of dollars of profits. I am absolutely disgusted by this kind of misconduct…