The team behind Paragon coin has issued a notice informing “Paragonians” that the US Securities and Exchange Commission (SEC) has ordered a 60-day extension of the claims process the regulator compelled when the company was found to have violated the Securities Act by selling “PRG” tokens via an ICO.
The company writes that, “the corresponding claims submission deadline will also be extended by the same number of days. It is now anticipated that Paragon will begin the claims process on July 27, 2019, with the claims period expiring on October 27, 2019.”
Paragon raised an estimated $12 million USD in the PRG token sale. The token sale was subsequently the target of an Securities and Exchange Commission (SEC) enforcement action that claimed sale of unregistered securities.
As part of its settlement with the SEC, Paragon agreed to:
- return funds to harmed investors
- register the tokens as securities under the Securities Exchange Act of 1934
- file periodic reports with the Securities and Exchange Commission (SEC) for at least one year
- pay $250 000 in penalties
In the interim between the settlement last fall and the latest announcement, Paragon put up for sale the $4 million USD “cannabis co-working space” it purchased after the raise.
Paragon also used the announcement about extended claims periods to report “exciting progress” on its cannabis “seed-to-sale tracking technology” including, “Welcoming new participants who are ready to demo,” the software.
“Among those are notable brands and vertically integrated operations, who will provide valuable feedback in order to better serve the industry,” Paragon writes.
The company also says its, “new revision of Paragon Wallet,” which combines cryptocurrency storage with a maps app, “allow(s) Paragonians to locate licensed cannabis dispensaries nearby, starting with Los Angeles, CA.”
On January 1st, the price of PRG coins pumped 2800% on the Russian exchange Yobit.
The pump was reportedly achieved through the exploitation of low liquidity and an initial investment of only $27 000 USD.
To put that in perspective, when PRG holders trading on Yobit went to bed on New Year’s Eve, their tokens were worth 30 cents. When they woke up the next day, their tokens were worth $10.
“Congrats on this. Seriously,” tweeted crypto reporter and analyst Larry Cermak in the early hours of New Years Day:
— Larry Cermak (@lawmaster) January 1, 2019
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