Octagonal PLC Statement re Suspension (8750J)

TIDMOCT

RNS Number : 8750J

Octagonal PLC

24 December 2020

For immediate release

24 December 2020

Octagonal plc

("Octagonal" or the "Company")

Statement re Suspension

In relation to the suspension in trading of the Company's Ordinary Shares on AIM this morning, the Company makes the following statement regarding Company's principal trading subsidiary GIS:

"The Company notes the decision of the U.S. Securities and Exchange Commission to file a complaint alleging that Global Investment Strategy UK Ltd. ("GIS") violated section 15 of the Securities Exchange Act of 1934 by acting as a broker-dealer in the U.S. without registration with the SEC .

The complaint omits several material facts. In particular, the complaint fails to note that GIS neither accepts nor executes orders for U.S. persons.

GIS is a broker, registered with and regulated by the Financial Conduct Authority in the U.K., and provides a broad range of brokerage services in the U.K. GIS' services to U.S. persons, however, are limited to providing secured financing to professional investors and traders. GIS' financing services are all provided after the borrower has already effected the transaction through another broker-dealer. The complaint misleadingly describes these other broker-dealers as introducing broker-dealers, but they are not GIS' correspondents and do not introduce accounts to GIS. GIS does not provide brokerage services to U.S. persons and intends to defend the allegations by the SEC."

The Company continues to consult with its legal advisers and a further statement will be made in due course pending which the shares remain suspended.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

For further information please visit www.octagonalplc.com or contact:

 
                                                [phone] 
 Octagonal Plc                                   9400 
 John Gunn, CEO 
 
 Beaumont Cornish Limited (Nominated Adviser 
  and Broker)                                   [phone] 
  James Biddle / Roland Cornish                  3396 
 www.beaumontcornish.com 
 

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December 24, 2020 08:04 ET (13:04 GMT)