U.S. SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
The Securities and Exchange Commission announced the temporary suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934 ("Exchange Act"), of over-the-counter trading of the securities of eConnect, of San Pedro, California at 9:30 a.m. EST on March 13, 2000, and terminating at 11:59 p.m. EST on March 24, 2000.
The Commission temporarily suspended trading in the securities of eConnect because of questions that have been raised about the adequacy and accuracy of publicly disseminated information concerning, among other things, a purported license arrangement regarding PalmTM organizers, a purported strategic alliance with a brokerage firm to distribute one of eConnect's products, and the amount of revenue reportedly generated by one of eConnect's websites.
The Commission cautions broker-dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by eConnect.
Further, brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspension, no quotation may be entered unless and until they have strictly complied with all of the provisions of the rule. If any broker or dealer has any questions as to whether or not he has complied with the rule, he should not enter any quotation but immediately contact the staff of the Securities and Exchange Commission in Washington, D.C. If any broker or dealer is uncertain as to what is required by Rule 15c2-11, he should refrain from entering quotations relating to the securities of eConnect until such time as he has familiarized himself with the rule and is certain that all of its provisions have been met. If any broker or dealer enters any quotation for the stock of eConnect that is in violation of the rule, the Commission will consider the need for prompt enforcement action.
If any broker-dealer or other person has any information that may relate to this matter, call the Pacific Regional Office of the Securities and Exchange Commission at (323) 965-3998.