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by Mike Caswell

The B.C. Securities Commission has issued an order halting Neotech Metals Corp., a Canadian Securities Exchange listing with a rare earth property, citing "unexplained and unusual fluctuations" in the company's price. The stock, which was under $1 until Nov. 30, 2023, recently touched a $4.15 high. The BCSC says the trading came amidst potentially misleading statements by the company.

The halt is contained in a brief order that the BCSC issued on Thursday, Nov. 21. In halting the stock, the BCSC describes the company's recent trading activity as unusual, noting that in the day prior to the halt Neotech triggered a single-stock circuit breaker three times. It did so as its volume and price saw considerable gains, despite the company issuing the standard "no material change" news release in which it said that it had no idea what would account for the activity.

While Neotech professed to have no knowledge of the sudden interest in its stock, the BCSC says that the company released potentially misleading statements on its website. Those statements were about Neotech's Treo property, a rare earths prospect in B.C. According to the BCSC, the company drew comparisons between Treo and a more advanced neighbouring property. Neotech made the comparisons despite having done "limited work" at Treo, the BCSC says.

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