Shares of Aphex BioCleanse Systems (OTCMKTS:SNST) closed sharply lower in the previous session.
Market Reaction
On Friday, SNST stock slumped 26.67% to $0.22 with 19k shares, compared to its average volume of 4.7k shares. The stock moved within a range of $0.2200 – 0.3000 after opening trade at $0.23.
Aphex BioCleanse Systems Suspends Director Scott Smith over Wrongful Litigation
Developer of the world’s first proprietary non-alcohol, non-toxic, hydrogen-based cleaning technology (Hy-IQ Water, uses hydrogen ions traveling nearly at the speed of light to sanitize by breaching the cell walls of exoskeleton germs), Aphex BioCleanse Systems (OTCMKTS:SNST), has made a major announcement on February 18, 2022. It has recently come to the attention of the Board of Directors of the company on February 10, 2022, that Board Member Scott Smith has filed a legal action in the U.S. District Court for Massachusetts against the company and two of its directors.
It is obvious that the objective of the lawsuit doesn’t benefit the company’s shareholders in anyway, but financially benefits Scott Smith individually. In fact, the litigation is in clear violation of the School Doctrine. This Doctrine supports that acting directors can’t bring actions against the company, its directors and/or officers that are not in the interests of the company, and as such breaches the fiduciary responsibility of each the Director to the shareholders. The litigation also potentially damages shareholder interests.
The Chairman of the Aphex Board of Directors, Thomas Fitzgerald has determined that Scott Smith is to be suspended and relived from all duties as a Board Director, effective immediately. A complete investigation of this matter is pending, along with a review by the other full Board members.
Traders Review
SNST stock is trading below the 20-Day and 50-Day Moving averages of $0.35 and $0.41 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.96.
