NOW Corp and CEO Penalized for Misleading Info

NOW Corp. (PSE:NOW), a company listed on the Philippine Stock Exchange, has been fined P1 million by the Securities and Exchange Commission (SEC) for allegedly providing misleading information to the public.

The fine applies to both NOW Corp. as a company and its chief executive, Mel Velarde.

The SEC found them administratively liable for violating Section 24.1 (d) in relation to Section 54.1 of the Securities Regulation Code.

The SEC imposed the P1 million fine on NOW Corp. and Velarde individually, citing their dissemination of misleading disclosures. The case originated from NOW Corp.’s disclosure in November 2021, stating that it had no knowledge of the details regarding a motion filed by the National Telecommunications Commission (NTC) against NOW Telecom Company Inc. before the Supreme Court, as NOW Corp. was not involved in the case.

NOW Telecom, an affiliate of NOW Corp., faced the motion from the NTC due to its unpaid supervision and regulation fees (SRF) and spectrum user fees (SUF) totaling P2.6 billion.

NOW Corp.’s disclosure aimed to absolve itself of responsibility for NOW Telecom’s alleged violations, asserting that they were separate entities with distinct personalities.

However, the SEC dismissed NOW Corp. and Velarde’s justifications, deeming them baseless.

The SEC order stated that NOW Corp. and Velarde were fully aware of the specific details surrounding the motion, namely the unpaid SUF and SRF of NOW Telecom with the NTC.

It further emphasized that Velarde’s involvement with NOW Telecom made him ipso facto participate in the transactions related to the firm’s unpaid SRF and SUF liability.

NOW Corp. plans to challenge the SEC order by filing a motion for reconsideration, as stated in its disclosure to the Philippine Stock Exchange.

The company received a copy of the order from the SEC’s Enforcement and Investor Protection Department on June 19, 2023.

NOW closed on Wednesday, June 21, 2023, at P1.25 per share, down by 6.72%.

It further distanced itself from its immediate resistance near P1.38. Support is near P1.09.

Today’s price drop came with a bearish volume above the 100% of NOW’s 10-day volume average.

Moreover, NOW’s dominant range is closer to its intraday low than its intraday high.

Dominant Range Index: BEARISH
Last Price: 1.25
VWAP: 1.30
Dominant Range: 1.3 – 1.3

This means the downtrend is likely to continue.

Check out the stock market consultancy service of Equilyst Analytics if you need guidance on how to plan your entry or manage your existing shares on NOW.

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Jaycee De Guzman

Founder and CEO at Equilyst Analytics

Experience the expertise of Jaycee De Guzman, the brain of Equilyst Analytics, renowned for his unique data analysis. He is a computer scientist and a self-taught digital marketing strategist and agriculturist. Since Equilyst Analytics’ founding in 2012, over 10,000 local and foreign clients have consulted with Jaycee de Guzman on crypto and stock investments.

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