SHAREHOLDER ALERT: Attorney Adam S. Tracy Announces Investigation into VeriTeQ Corp Over Recent Sale of Convertible Notes
May 15, 2015 (PRLEAP.COM) Business NewsBeverly Hills, California — May 15, 2015 /prleap/ — This morning securities attorney Adam Tracy and the attorneys of the Securities Compliance Group, a leading securities law firm based in Chicago, announced an investigation in the affiars of VeriTeQ Corp. The investigation centers around potential breaches of fiduciary duty and material failures to disclose with respect to VeriTeQ's private sale of convertible debentures. The company's filings with the Securities and Exchange Commission suggest that VeriTeQ has sold in the aggregate, approximate amount of $346,000.
"So-called "toxic" debt financing is a common form of financing prevalent among microcap issuers," said Adam Tracy. "What can be so deleterious to existing shareholders and especially smaller shareholders is that, as in the case with VeriTeq, the debt can be converted into shares of the issuer's common stock at a fraction of the current price, " he continued. "Ultimately, as may be the case here, the potential new issuance of stock arising from the debt conversions can exceeds the total issued and outstanding shares, making it extremely dillutive and detrimental to existing shareholders."
The Securities Compliance Group is a national law firm which represents investors and individuals in securities litigation. The firm is focused on providing exemplary legal services in complex litigation in the areas of securities, shareholder, antitrust and consumer litigation, throughout all phases of litigation. The firm has an experienced trial team able to handle the most complex matters.
If you own common stock in VeriTeQ and wish to obtain additional information and protect your investments free of charge, contact the firm at firstname.lastname@example.org or call (888) 978-9901.
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