Applied UV

Kurta Law is investigating recommendations of Applied UV (AUVI). Shares of this stock are high risk, which was clearly disclosed in the company’s prospectus. Brokers who recommend high-risk investments may be in violation of securities industry rules and regulations. Securities attorneys can help investors who have suffered losses due to broker fraud or misconduct. Contact us today for more information: (877) 600-0098 or info@kurtalawfirm.com

What is Applied UV?

According to the prospectus, Applied UV produced proprietary air disinfection technology, specialty LED lighting, luxury mirrors, and commercial furnishings. They market to clients in healthcare, hospitality, food preservation, cannabis, education, and winery vertical markets. Applied UV reportedly offers a variety of products designed to sterilize and disinfect surfaces as well as the air.

Risk Factors

Brokers should have accurately represented the risks associated with this type of investment. If your broker told you this was a low-risk investment or that it was suitable for someone with a conservative risk profile, you may have a case for a securities attorney. Call (877) 600-0098 or email info@kurtalawfirm.com.

The following are just a few examples of risk factors. You can see the full list on page 14 of the prospectus.

Possible De-Listing from NASDAQ

On August 23, 2023, Applied UV received a letter from NASDAQ stating that the bid price was no longer at the $1.00 minimum and that the company had 180 days to achieve that minimum price. Any broker should have known that the stocks had been threatened with de-listing, making them extremely risky.

Geopolitical Tensions in the Middle East

The Israel-Palestine conflict could result in fluctuating energy prices and disruptions to the supply chain.

Use of Proceeds of the Offering

Applied UV stated in the prospectus that it would use its discretion to spend the proceeds that resulted from the offering and that investors might not agree with the use of those proceeds. It stated they would broadly go toward corporate expenses, including investment and acquisitions. Those investments could lose money.

Tax-Related Risks

The prospectus warns that participating in this stock offering may result in tax-related consequences for investors.

Stock-Related Risks

Investors in this company may see the value of their stocks diluted by future offerings.

Research Reports

The market for Applied UV shares depends on the research publications by securities and industry analysts. If they do not publish reports, or if they publish unfavorable information, the price of stocks could decline.

Controlled Company

At the time of the publication of the prospectus, Applied UV was a controlled company, meaning that its CEO owned at least 50% of the voting power. This means that the company’s corporate governance and compensation committees might not consist entirely of independent directors, a setup that offers fewer protections to shareholders.

Aegis Capital Corp. Underwriting  

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm.  

Did Your Shares of Applied UV Suffer Losses?

If you lost money on Applied UV, consider contacting a securities attorney for a free case evaluation. Our attorneys have experience representing clients who were sold overly risky investments. Call (877) 600-0098 or email info@kurtalawfirm.com.