Sedona Corp. yesterday requested that the Securities and Exchange Commission and the National Association of Securities Dealers investigate alleged improprieties in the trading of its stock.
Sedona, a customer relationship management software vendor for small and mid-sized financial services companies, contacted the SEC and NASD because of information it said it recently received. The information alleged that the market price of the common stock of a number of companies, including Sedona, has been and continues to be manipulated through improper short selling and other activities.
As a result, the King of Prussia, PA-based company will notify its debenture holders and their agents that it will not currently honor requests for conversion of its outstanding convertible debenture.
Sedona also said it intends to take additional actions, as it deems appropriate to protect the company. It also said that although it believes that its actions are warranted, there could be no assurance that any dispute or legal proceedings resulting from this would not have a material adverse effect.