Tenet Fintech Group Inc. (formerly Peak Fintech Group Inc.)

Investigation
11/19/2021

Initial Lawsuit
11/19/2021

Lawsuit Progression
02/10/2022

Investigation

Continous Holding
September 2, 2021 to October 13, 2021
Proposed Claim

Investigation in connection with Tenet Fintech’s registration of its common shares with the U.S. SEC, trading suspension and published short seller thesis.

Main Event

Registration Statement Withdrawn

09/29/2021

Company Statement

Tenet Fintech issues a press release announces the withdrawal of its registration statement with the SEC “while it works to comply with new SEC disclosure guidance.” Tenet referred to the guidance issued by the SEC on November 23, 2020.

“Peak’s application to list on the NASDAQ was made under the Multi-jurisdictional Disclosure System (the “MJDS”), which was jointly adopted by the SEC and the Canadian Securities Administrators. The MJDS is intended to make it easier for companies on both sides of the border to list their respective securities on exchanges in both countries. The SEC notes that the MJDS allows eligible Canadian companies to register their securities and fulfill their periodic reporting requirements by use of documents prepared in accordance with Canadian requirements and reviewed by Canadian Securities Administrators. The Company has been cooperating with the SEC and plans to submit an amended Form 40-F that highlights the concerns referenced in the Guidance as soon as practicable.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close	Previous close	Price variation	Percentage variation
$9.09	$9.09	$0	0%

See more on Factual Timeline

Initial Lawsuit

First Complaint - 11/19/2021

Plaintiff brings this securities class action on behalf of persons or entities who purchased or otherwise acquired publicly traded Tenet Fintech securities between September 2, 2021 and October 13, 2021, inclusive.

Filing Date
11/19/2021
Class Period
09/02/2021 to 10/13/2021
Transgression
Securities Violation
Filing Firms
The Rosen Law Firm, P.A.
Case Title
van Boxtel v. Tenet Fintech Group Inc. et al
Docket Number
1:21-cv-06461
Court
New York Eastern District Court
Free File
Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(1) the company did not own 51% of ASFC through Wuxi Aorong;
(2) the company did not disclose its actual ownership structure of ASFC, an undisclosed and potentially problematic nominee shareholder agreement;
(3) Huayan did not own the Heartbeat platform;
(4) the Heartbeat platform did not exist prior to the alleged acquisition;
(5) the company faced imminent delisting from NASDAQ due to non-compliance with known regulations; and
(6) as a result of the foregoing, defendants’ public statements were materially false and/or misleading at all relevant times.