EFFINGHAM CO., GA (WTOC) - The U.S. Securities and Exchange Commission (SEC) announced the temporary suspension of trading of Medient Studios, Inc. stock.
The Commission said it is "temporarily suspending trading on 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."
Medient chief financial officer Jake Schapiro took over as CEO after former chief executive Manu Kumaran was ousted by the company's board of directors June 11. In a conference call to investors the next day, Schapiro, promised to stop diluting shares of Medient stock.
He blamed Kumaran for issuing new shares to raise funds to build Medient's proposed $90 million movie studio, slated for 1,550 acres off Interstate 16 owned by the Effingham County Industrial Development Authority.
The Commission is cautioning brokers, dealers, shareholders, and prospective purchasers to carefully consider information issued by the company, according to a news release.
The trading is suspended from 9:30 a.m. EDT on June 25, 2014, through 11:59 p.m. EDT on July 9, 2014.