SEC Suspends Trading In Columbia Firm's Stock; Novatek's Reports Under Investigation
The Securities and Exchange Commission yesterday halted trading in the stock of Novatek International Inc., a Columbia firm that earlier this year got out of the business of building steel and concrete houses and started selling medical supplies in South America.</br></br>The SEC said it is reviewing the accuracy of financial statements and press releases issued by the company about its new venture. In recent months, Novatek has issued statements announcing that it obtained contracts with government agencies in Argentina, Brazil and Chile to buy millions of dollars worth of screening tests for AIDS, cholera and other diseases.</br></br>Anthony Sebro, corporate secretary of Novatek, would not comment yesterday, but said the firm planned to issue a statement. The statement had not been received at press time.</br></br>The SEC took action in conjunction with the National Association of Securities Dealers, which on Friday temporarily suspended trading of Novatek shares on the Nasdaq Stock Market. NASD did not say why it took the action.</br></br>When trading was halted by NASD Friday, Novatek's stock was trading for $9 a share, double the price at which it was first sold to the public in April 1995. The company sold only 750,000 shares in its first offering, but has since issued millions of additional shares to buy its medical supply business and pay debts.