Alkaline Water Company Inc. Securities Investigation
The White Law Group is currently investigating potential securities claims involving broker-dealers who may have unsuitably recommended Alkaline Water Company to investors.
Background on Alkaline Water Company
According to SEC filings, on February 5, 2024, Alkaline Water (WTER) announced its delisting from NASDAQ. The company’s stock reportedly fell 99% over a 3-day period, losing $3.4M+ of shareholder value.
Alkaline Water Company Inc. (WTER) announced at the time a change of listing from NASDAQ to OTC. This announcement follows several years of negative operational and financial trends
Performance – Alkaline Water Company (ADSX)
Alkaline Water Company had annual net losses and negative cash flow from operations with a 50% decline of gross margin between 2021 and 2022. The company was reportedly using proceeds from sale of stock as a major source of financing.
Alkaline Water Company’s Chairman and President/CEO both reportedly resigned in January 2024 and the stock price has steadily declined since August 2021.
WTER stock dropped 99% over a 3-day period and lost over $3.4 million of its market capitalization, seriously damaging shareholders.
Risks Associated with Small Stock Offerings:
- Lack of Information: Many small companies may not provide comprehensive financial disclosures or have limited operating histories.
- Market Volatility: Small stocks can be more volatile than larger, established companies, leading to significant price fluctuations.
- Liquidity Concerns: These stocks may have low trading volumes, making it difficult to buy or sell shares at desired prices.
Broker Responsibilities and Investor Protections
Broker dealers are obligated to conduct thorough due diligence on any investment they recommend and ensure that all recommendations are suitable for their clients. Firms that fail in this duty may be held liable for investor losses through FINRA arbitration claims.
If a broker or brokerage firm makes an unsuitable investment recommendation or fails to disclose the associated risks adequately, they may be found liable for investment losses in a FINRA arbitration claim. Fortunately, FINRA provides an arbitration forum for investors to resolve such disputes.
Recovery of Investment Losses
If you have concerns about your investment in the Alkaline Water Company, you may have the option to file a complaint against your brokerage firm. The securities attorneys at The White Law Group offer free consultations and can be reached at 1-888-637-5510.
About The White Law Group
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors across the country in claims against their brokerage firms.
Last modified: August 2, 2024
