On2 Technologies, Inc. (AMEX: ONT) is a penny-stock company whose stock has recently risen from $0.74 to a high of $4.50 per share between June 23, 2003 and July 10, 2003. The stock currently trades at $2.86 per share. During the period of the stock’s dramatic rise, On2 announced on June 30, 2003 that “the AMEX had accepted On2’s plan to regain compliance with the AMEX’s continued listing standards and granted On2 an extension until October 29, 2004 to regain compliance with those standards.”
Asensio & Company, Inc. has written extensively with regard to the AMEX’s failure to de-list companies that do not meet its listing standards. In fact, Asensio & Company was instrumental in the initiation of a Congressional investigation into the AMEX’s listing practices. As a result of our work uncovering questionable activity at the AMEX and a subsequent article in BusinessWeek, the U.S. Congress requested an investigation of the AMEX’s listing requirements. The investigation found that the AMEX used its discretionary authority to override its listing guidelines more often than was appropriate and deferred the delisting of companies for “excessive” time periods. The investigation concluded that the potentially negative impact of exchange practices on public confidence warranted continued monitoring of the AMEX listing program.
In addition, On2 is one of the Russell Index stock scams in which companies were, in our opinion, listed on the AMEX for the apparent purpose of being included in the Russell Index. After these companies were included in the Russell Index their stock prices dropped significantly. On November 2, 2000, Asensio & Company, Inc. wrote a letter to the U.S. Securities and Exchange Commission that describes the apparent stock scheme and lists On2 as one of the companies involved. ###216.gif::Click here to view the letter.###