OLB Group

Kurta Law is investigating possible securities fraud cases involving recommendations of shares of OLB Group (NASDAQ: OLB) These were high-risk investments that did not belong in the portfolios of ordinary investors, especially investors who did not wish to take on risk or relied on their portfolios for income.

The August 2020 Offering

OLB Group conducted an offering in August 2020, with Aegis serving as the underwriter. The offering consisted of 700,000 units. Each unit consisted of one share of common stock, two Series A warrants, and one-half of one Series B warrant.

What is OLB Group?

OLB is a Fintech eCommerce merchant services provider, such as business management platforms, payment processing, and capital raising platforms. The company is also involved in Bitcoin crypto mining.

Risks Associated with OLB Group Investment

The prospectus states: “Investing in our securities is speculative and involves a high degree of risk.”

The following are just a few of the risks listed in the prospectus. For a complete list of risks that faced investors with this offering, consult the prospectus.

• OLB recently acquired Excep Business Solutions, Payprotec Oregon, Excel Business Solutions, and eVance processing. To finance the asset acquisition, OLB took out loans. OLB disclosed that without sufficient financing, it would default on its loan. At the time of filing the prospectus, the firm was subject to restrictive debt covenants that restricted its business operations.
• OLB has a history of operating losses.
• The company relied on short-term loans to fund capital requirements. These loans came from CEO Ronny Yakov and John Herzog, a significant shareholder. There was no guarantee that OLB could continue to meet capital requirements.
• In connection with OLB’s preparation of financial statements, an outside firm identified material weaknesses in its internal control over financial reporting.
• Bitcoin and cryptocurrency in general have faced increasing regulatory scrutiny. Regulatory fines might cut into investor returns. The prospectus states, “We operate in a complex regulatory environment, and failure to comply with applicable laws and regulations could adversely affect our business.”
• According to the prospectus, the business’s success depends on their continued investment in research and development. The success of OLB’s enterprise depends on the effectiveness of this research.
• CrowdPay is vulnerable to hackers and cyberattacks.
• OLB faces significant market competition.

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.  

OLB Group Share Prices

In May 2023, OLB Group received notification that they failed to meet listing requirements with a share price of less than $1.00 for more than 30 business days. NASDAQ informed the company that they had 180 days to meet listing requirements. The stock narrowly avoided delisting by rising above $1.00 over the summer.

As of posting, shares of OLB are trading for under a dollar.

Kurta Law Can Help

If you lost money on OLG Group Investments, you may be able to recover. Investment contracts usually feature a pre-dispute arbitration clause. These clauses are agreements to pursue FINRA arbitration rather than suing in civil court. FINRA arbitration is a niche area of law and securities attorneys can offer expert guidance. Our attorneys also offer free case evaluations and do not collect a fee unless they win your case. Call (877) 600-0098 or email info@kurtalawfirm.com today.