Focus Universal hires Mark David Hunter to investigate naked short selling

Focus Universal announce dthat it has hired former SEC Enforcement attorney Mark David Hunter to review potential violations of the laws by entities and individuals engaged in the unlawful naked short selling activities and market manipulation of the Company’s stock. Mr. Hunter will counsel the Company regarding potential litigation against those engaging in or facilitating the illegal short selling, as well as a potential referral to the U.S. Securities and Exchange Commission through its Whistleblower Program. This is part of the Company’s larger set of action plans and resolutions approved at the management and Board to address what might be a pervasive problem of illegal naked short selling of its stock. Based on preliminary investigations, the Company has approximately 3 million shares which are tradable and were sold into the market, most of these shares are currently locked up. Although the Company did not have any institutional holdings before August 31, 2021, institutional investors currently hold more than 6 million shares with current non-institutional investors holding more than 2 million shares. Figures also show that approximately 6 million shares have been sold short, which represents approximately 200% of the publicly tradable shares in the float. Furthermore, the Company understands that many of its long-term investors hold their shares in a cash accounts which means their shares can not be borrowed for short selling. A review of this data lends strong support to the notion that the Company has been the target of naked short selling. As part of the Company’s larger goal of reducing naked short selling activity in the Company’s stock, the Company has retained Mr. Hunter due to his experience in investigating and prosecuting violations of the federal securities laws, rules, and regulations. Along with the previously mentioned assistance of Shareholder Intelligence Services, the Company is able to monitor trading activity, including broker-dealers, clearing firms, and shareholder position management. This data, along with our legal counsel will identify, investigate, and prosecute any bad actors exhibiting suspicious, aberrant, and or unusual trading activity, and implement action to protect investors from illegal naked short selling. Focus also plans to further and continue investor communication as of part of action plans to combat the potential unlawful market manipulation and naked short selling activities.