Assure Holdings: Securities Investigation
The White Law Group is investigating potential claims involving Aegis Capital Corp. and other brokerage firms for the unsuitable sale and recommendation of investments in Assure Holdings. The company’s common shares of common stock are listed on the Nasdaq Capital Market under the symbol “IONM.”
Aegis Capital Corp. reportedly underwrote an offering for Assure Holdings, on August 8, 2022, of $6,245,217 which has experienced a post-offering return -98.5% as of February 28, 2024.
According to a recent analysis by the financial economics consulting firm SLCG, many offerings underwritten by Aegis Capital were issued by nano-cap companies on the brink of delisting and bankruptcy. Over 95% of Aegis Capital’s underwritings have underperformed the average microcap stock.
According to Market Watch as of July 1, 2024, shares of IONM are down more than -95.59% over the past 12 months.
Assure Holdings Background and Latest News
Assure Holdings Corp. is reportedly a provider of outsourced intraoperative neuromonitoring and remote neurology services.
On July 23, 2024, shares of Assure Holdings were trading lower in the after-hours market Tuesday, following a notice that the Nasdaq Stock Market will suspend and delist the company’s securities.
After the bell, the shares reportedly fell 21% to $1.90. The stock took a dive to an all-time low of $2.25 in Tuesday’s regular session before closing at $2.43.
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.
In addition to these risks, there are the risks associated with pharmaceutical and biotech investments. The research and development process for pharma companies often involves costly and lengthy testing trials that yield specific data. If the expected data or end points are not met, that could be bad news for investors.
Broker Responsibilities and Investor Protections
Broker dealers are required 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 suffered investment losses in Assure Holdings, you may have recovery options. 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
