SEC Charges Company for Unregistered Offerings

ADMINISTRATIVE PROCEEDING
File No. 3-19961

September 3, 2020

The Securities and Exchange Commission today announced settled charges against Covalent Collective, Inc., a Colorado-based company, for raising approximately $19 million through the sale of unregistered securities.

According to the SEC's order, Covalent raised funds from nearly 500 investors through a continuous series of securities offerings from 2014 to 2019. The order finds that Covalent did not file or cause to be filed a registration statement with the Commission in connection with the offer and sale of its securities, that no exemption from the registration requirements was available, and that this violated the registration provisions of Sections 5(a) and 5(c) of the Securities Act of 1933.

Without admitting or denying the SEC's findings, Covalent consented to an order requiring the company to cease and desist from violating these provisions. Pursuant to the order, Covalent, which was formerly known as Doyen Elements International Inc. and Advantameds Solutions Inc., has agreed to comply with an undertaking that the company provide written notice of the order to investors and to cooperate with the Commission in matters related to Covalent's securities or its current or former officers.

The SEC's order also notes that the SEC filed a subpoena enforcement action against Covalent in June 2019 and that Covalent asked its founder and prior CEO to leave the company in part to due to his response to the SEC's subpoena.

The SEC's investigation was conducted by Ariella Guardi and Pesach Glaser and supervised by C.J. Kerstetter in the Chicago Regional Office.