CPE News (10/22/2020) – Kik Interactive Inc announced that Judge Alvin K. Hellerstein of the U.S. District Court for the Southern District of New York has approved a negotiated settlement between Kik and the U.S. Securities and Exchange Commission (SEC) in connection with the company’s initial sale of the Kin token in 2017.
Under the settlement, Kik will pay a one-time fine of US $5 million. The settlement relates specifically to the 2017 Kin Token Distribution Event and will not require the registration of the Kin token as a security with the SEC. This settlement resolves all ongoing matters between Kik and the SEC.
SEC previously said its investigation was assisted by the Ontario Securities Commission (OSC). According to Kik OSC filing, Kik sold US $2 million worth Kin tokens to 14 Ontario investors.
Kitchener, Ontario based Kik is a provider of messaging mobile app. The company has previously raised over CDN $120 million from investors, Tencent, Valiant Capital Partners, Millennium Technology Value Partners, SV Angel, Foundation Capital, RRE Ventures, Spark Capital, and Union Square Ventures.
photo credit: Kik Interactive
News Release
Kik Announces Settlement with U.S. Securities and Exchange Commission
TORONTO, Oct. 21, 2020 /CNW/ – On October 21, 2020, Judge Alvin K. Hellerstein of the U.S. District Court for the Southern District of New York approved a negotiated settlement between Kik Interactive Inc. (“Kik”) and the U.S. Securities and Exchange Commission (“SEC”) in connection with the company’s initial sale of the Kin token in 2017. Under the settlement Kik will pay a one-time fine of US$5million. The settlement relates specifically to the 2017 Kin Token Distribution Event and will not require the registration of the Kin token as a security with the SEC. This settlement resolves all ongoing matters between Kik and the SEC.
The company issued the following statement regarding the announcement:
“This has been a long, expensive, and public battle between Kik and the SEC. Although we respectfully disagree with Judge Hellerstein’s analysis in his ruling and were prepared to pursue an appeal, the SEC offered settlement terms that allow us to put this behind us and focus on our mission. We look forward to an exciting future for the Kin Ecosystem and the millions of mainstream consumers who earn and spend Kin every month.”
SOURCE Kik Interactive Inc.
For further information: press@kik.com