ROSEVILLE, Calif., Dec. 7, 2017 /PRNewswire/ — InnerScope Hearing Technologies Inc. (OTCQB “INND”), (the “Company” or “InnerScope”) announced today that it has been made aware of and requested by the OTC Markets Group, Inc. (“OTC Markets”) to comment on recent trading and promotional activity concerning its common stock.
On December 5, 2017, OTC Markets informed the Company that it became aware of certain promotional activities concerning the Company and its common stock. OTC Markets informed the Company that it had become aware of promotional literature encouraging investors to purchase the Company’s common stock. The Company has been informed that this promotional activity coincided with higher than average trading volume in the Company’s stock. The Company was unaware of the promotional activity until informed by OTC Markets on December 5, 2017, and is unaware of the identity and scope of these efforts by unaffiliated third parties. The Company is not aware of the extent of the promotional activity or the extent of its dissemination.
The Company was, and is not aware of the effect of the unauthorized promotional activities, if any, on the trading activity of InnerScope’s common stock. The Company has previously issued over the preceding several weeks press releases and reports regarding the opening of its e-commerce store and its name change. The Company was also featured in the magazine “The Hearing Review.” Additionally, the Company also believed that any increase in trading activity was the result of the Company hiring a third party, CorporateAds.com, to produce a flyer highlighting the various avenues for revenue generation being pursued by the Company. This flyer contained only content from Company press releases, however, the Company did not retain full editorial control over the final product. CorporateAds.com was initially retained for 15 days with an automatic six-month extension that expired by the end of October.
After direct and diligent inquiry, the Company can definitively state that the Company, its officers, directors and, to the Company’s knowledge, its controlling shareholders (i.e., shareholders owning 10% or more of the Company’s securities) and third-party service providers have not, directly or indirectly, authorized or been involved in any way (including payment to a third-party) with the creation or distribution of promotional materials regarding the Company or its securities, outside of those produced by CorporateAds.com.
As part of the OTC Markets’ Group inquiry, the Company has been asked to disclose all transactions