Ominto (Dubli) to delist itself from Nasdaq
In a May 14th press-release, Dubli (trading as Ominto) has announced it will voluntarily delist itself from the Nasdaq Capital Market.
The official reason for the voluntary delisting is ongoing non-compliance with regulatory filing requirements.
The Company’s decision to withdraw its common stock from listing on the Nasdaq Capital Market is due to the fact that the Company has been unable to timely file its periodic reports for the fiscal year ended September 30, 2017, and the quarter ended December 31, 2017.
As previously disclosed, on each of January 3, 2018, February 22, 2018 and March 1, 2018 the Company received a letter from Nasdaq indicating that the Company is not in compliance with Nasdaq’s continued listing requirements under the timely filing criteria outlined in Listing Rule 5250(c)(1), and as of May 14, 2018, the Company has not regained compliance with the Nasdaq Rules.
In the press-release Ominto fail to disclose why the company hasn’t filed its periodic reports.
Here at BehindMLM we’ve been loosely tracking Dubli’s financial affairs.
Our last report was published in December 2016 and detailed annual losses for the year of $10.3 million.
As of May 2017, Dubli’s quarterly filings revealed losses of just under $7 million.
Through non-compliance, Dubli have kept a lid on their annual 2017 financials.
In their press-release Dubli state their intention to
file with the Securities and Exchange Commission, and Nasdaq, a Form 25 relating to the delisting of its common stock on May 24, 2018.
It is anticipated that the delisting will become effective June 3, 2018, ten days after filing the Form 25.
As a result, the Company expects the last day of trading of its common stock on the Nasdaq Capital Market will be on or about June 1, 2018.
The Company has filed an application to have its shares quoted on the OTC Pink which is operated by OTC Market Groups Inc., under the symbol “OMNT” and anticipates that its shares will begin to trade on the OTC Pink effective June 4, 2018.
According to Investopedia, there are two typical reasons for a company to enter pink sheet trading.
The first is if the company ‘is unable to meet the initial listing requirements of the Nasdaq or NYSE.‘
Given Dubli and Ominto have already listed, this doesn’t apply.
The second reason is if
the company has been delisted from a major exchange.
When a company is facing tough times and is unable to meet the requirements for continued listing on the Nasdaq or NYSE, it will be delisted.
This usually happens to companies that are under financial strain and near bankruptcy.
While I can’t make any claims of pending bankruptcy, losing tens of millions of dollars each year obviously isn’t a healthy business model.
One can only wonder what Ominto management are trying to hide from their investors and affiliates.
The most likely reason for the delisting is that Ominto used fraudulent financials to qualify for its NASDAQ listing in the first place.
(Particularly points 3 and 4) for more details.
I don’t get it. They invested in Lani after the listing?
No, they bought Lani before the listing.
More details here: valuewalk.com/2017/11/ominto-nasdaq-listing-qualifying/
Ah, fair enough. So where the SEC at? This sounds right up their alley.
Meanwhile what are Ominto and Dubli hiding?
Subsequently, the entire Ominto board of directors (except for CEO Michael Hanson) has resigned.
Can’t help but wonder if they decided to resign before or after the delisting.
Delisting took effect on June 1st. Stock is now traded on OTC pink. (Stock has also lost 80% of its value since the delisting was announced — From $2.63 May 11th to $0.49 today).
The page no longer exists:
You can read more about the machinations of CEO Michael Hansen in 2014 in the German MLM Forum:
A court has issued a restraining order against Michael Hansen for threatening Dustin Mitchell, DubLi’s former Vice President of North American Sales Development.
I have inside information that the salaries are not being paid on time and majority of their staffs have been laid off in Dubai.
Japan seems to be the only market keeping the lights on, providing a whopping 87% of Dubli’s website traffic (Alexa).
Only started in July… who knows where they’ll go after.
According to the latest SEC filing, Ominto has sold “an insignificant amount of the assets of the Company” to One Vision Capital Group A/S (aka CEO Michael Hansen) for $1 million. These so-called insignificant assets are:
● Dubli Network Limited
● Dubli E-Commerce LTDA
● Dubli Holding Limited (JAFZA)
● Dubli India Private Limited
● Dubli Network Limited LLC (Delaware)
● Dublicom Limited LLC (Delaware)
● CG Holdings Limited (and its subsidiaries listed below):
o Dubli Network Limited (BVI)
o Crown Group Investments Limited (JAFZA)
o Dublicom Limited (Cyprus)
o Lenox Resources LLC (Delaware)
o Dubli Pakistan Private Limited (Pakistan)
o Dubli Japan G.K. (Japan)
o Dubli Asia Pte Ltd (Singapore)
o Dubli Greater China Ltd (Hong Kong)
So, essentially the entire company (less Lani Pixels animation) has been sold off for one fifteenth the current market capitalization (14.86 million).