Thompson Resigns From Covalent Collective

Covalent Collective, Inc. announced today that it has submitted all of the documents in its possession, custody or control that relate to the subpoena issued against the company by the United States Securities and Exchange Commission (SEC) on October 24, 2018.

“On July 23 we produced all of the documents we believe were necessary to comply with the SEC’s subpoena,” commented Mr. Bill Gregorak, CEO of Covalent Collective.  “While we must hold ourselves accountable for missing the initial deadline, once we fully understood what was required by the SEC, we were able to fulfill our obligations and submit a detailed response ahead of the deadline.  Although we won’t know if the SEC is satisfied with the content of our submission until a later date, we believe that the significant volume of correspondence and documentation we produced included everything called for by the subpoena,” Mr. Gregorak continued.

Separately, Covalent said that its founder Geoffrey Thompson had resigned from his positions as a director and officer of the company and its various subsidiaries and agreed to relinquish all associated corporate responsibilities effective immediately.

The SEC Subpeona

On June 4, 2019, the Securities and Exchange Commission filed a subpoena enforcement action in the U.S. District Court for the Northern District of Illinois against Covalent Collective, Inc. f/k/a Doyen Elements International, Inc. f/k/a Advantameds Solutions, Inc. for failure to produce documents in an investigation.

The SEC’s application alleged that Doyen, through its founder, Geoffrey Thompson, may have violated the registration provisions of the securities laws by engaging in an unregistered offering of securities, and may also have made misleading representations to investors and potential investors about the operations, acquisitions, and projected stock price of Doyen and related entities.

As part of its investigation, the staff in the SEC’s Chicago Regional office served Doyen with a document subpoena on October 24, 2018. The SEC’s application alleges that Doyen repeatedly refused to produce any documents in response to the subpoena, notwithstanding multiple efforts by the SEC to secure its compliance.

The SEC’s application seeks an order from the federal district court compelling Doyen to comply fully with the subpoena. The SEC is continuing its fact-finding investigation and, to date, has not concluded that anyone has violated the securities laws.

Debra Borchardt

Debra BorchardtDebra Borchardt

Debra Borchardt is the CEO, Co-Founder, and Editor-In-Chief of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Masters degree in Business Journalism from New York University.


7 comments

  • Avatar
    john

    July 27, 2019 at 1:53 pm

    Toxic thompson is gone bye bye

    Reply

    • Avatar
      Kay

      July 29, 2019 at 3:31 pm

      So are people still thinking they will become rich from this investment?

      Reply

      • Avatar
        Jake

        August 14, 2019 at 9:37 pm

        Yes

        Reply

  • Avatar
    Mike Bradley

    August 29, 2019 at 7:46 pm

    Hi Debra, great work here following this as events unfold. Once all is said and done, specifically in the matter concerning the SEC vs. Accelera, what do you think will happen to the Accelera stock? Is there any possibility Covalent Collective will try and roll their company into it, the right way of course, or do you think the ticker will be abandoned? Any insight you have will be greatly appreciated.

    Thank you!

    Reply

    • Debra Borchardt
      Debra Borchardt

      August 30, 2019 at 8:08 am

      I can’t imagine that Covalent and Accelera would ever be combined. That would require an acquisition. Since the OTC is unregulated it really is incumbent upon the company to request it be removed. FINRA could eliminate it as well. Typically they just languish on the pink sheets waiting to be resurrected for the next (ahem) company iteration.

      Reply

  • Avatar
    Fredm

    December 20, 2019 at 8:47 am

    What happened since? Have they made any acquisitions, profits, moves at all? Are they bankrupt?

    Reply

    • Debra Borchardt
      Debra Borchardt

      December 20, 2019 at 8:49 am

      We have heard that Mr. Thompson is sending out communications via audio recordings to select shareholders. He has suggested he is working on a settlement with the SEC in one recording that we did get access to. Until there is hard news, we have nothing to report.

      Reply

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