Public trade in Baltia Air Lines, Inc. (trading as USGlobal Airways) shares is set to be terminated after the US Securities and Exchange Commission (SEC) revoked its registration of registered securities on June 18.
The regulator said in a filing this week that the start-up had not responded to any previous directives that it lodge accurate periodic reports dating back to the period ended March 31, 2016, or risk deregistration. Trade in Baltia's stock was already suspended in May when the first warning notice was posted.
"Failure to file periodic reports violates a crucial provision of the Exchange Act," the SEC said. "The purpose of the periodic reporting requirements is to publicly disclose current, accurate financial information about an issuer so that investors may make informed decisions."
Baltia has since said it will not file a petition for review preferring instead to use those funds to update the required records following which, it will apply to be re-registered.
"Over the past many months, the Company has been unable to complete its audited financial statements and therefore file its periodic reports with the SEC," it said in a statement.
"The SEC’s filing requirement is very strict and matter of fact. The Company decided that the better course, rather than trying to defend a defenceless proceeding with the SEC, would be to use those funds to concentrate on the Company’s filings. While the deregistration is not enviable[sic], once the Company is able to complete its financial statements, the Company believes it will be able to have caught up in its filings even quicker than before the deregistration."
