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CNBC investigation into Riot Blockchain reveals investor with long history with tiny companies

Published 02/16/2018, 11:33 AM
© Reuters.  CNBC investigation into Riot Blockchain reveals investor with long history with tiny companies
RIOT
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  • CNBC reported that its inquiry into Riot Blockchain's (RIOT -31.9%) dubious history revealed the name of one Barry Honig. It seems he became active in the company when it was a veterinary testing firm called Bioptix in April 2016.
  • A prospectus filed with the SEC on August 24, 2017, showed Mr. Honig owning 543K shares and GRQ Consultants, which he founded and heads, owning 30.6K shares. His father, Alan Honig, was also on board, owning 20K shares.
  • Another investor was Mark Groussman, owner of 160K shares, who leads another consultancy called Melechdavid, owner of 340K shares.
  • Mr. Honig and Mr. Groussman have a long history together. For example, they were both involved with MusclePharm in 2012, providing services paid in stock, each accumulating a 4.2% stake. Both men also worked on a reverse merger involving American Strategic Minerals.
  • A 13G filed filed on October 11, 2017 for Riot Blockchain/F/K/A Bioptix reported a 639,920-share stake by Mr. Honig's brother Jonathan. A 13G filed two days later listed Mr. Groussman's 399,020-share stake.
  • Diligent investors will, no doubt, be looking into RIOT through a sharper lens.
  • Previously: CNBC investigates "questionable" Riot Blockchain; shares plummet 21.9% (Feb. 16)
  • Now read: Madrigal Pharmaceuticals: Buy The Dip


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