Los Angeles, California, April 05, 2018 (GLOBE NEWSWIRE) -- Blow & Drive Interlock Corporation (OTC: BDIC) announced today that it has been made aware of and requested by OTC Markets Group, Inc. to comment on recent trading and promotional activity regarding its common stock, which is quoted on OTC Markets.
On April 3, 2018, OTC Markets informed the Company that it became aware of certain promotional activities concerning BDIC and its common stock. OTC Markets informed the company that it had received copies of a promotional newsletter and an email encouraging investors to purchase the Company's common stock. The Company has been informed that this promotional activity coincided with higher than average trading volume in the Company's stock.
The Company recently entered into an agreement with Alta-Waterford LLC, under which Alta-Waterford agreed to provide consulting services regarding investor awareness. However, under the agreement Alta-Waterford stated that it would consult with the Company’s Board of Directors and executive officers regarding anything it undertakes regarding investor awareness and that any disclosures from Alta-Waterford would contain a disclaimer that the information is being provided by Alta-Waterford. The Company was not made aware of, and did not review, any of the promotional materials provided to the Company by OTC Markets and those promotional materials did not state they were from Alta-Waterford, which Alta-Waterford was required to do under the agreement. The Company asked Alta-Waterford if it was responsible for the promotional materials and Alta-Waterford ensured the Company that the promotional materials were not from Alta-Waterford. As a result, at this time, the Company cannot confirm who sent the promotional materials, however, the Company has notified Alta-Waterford that it is terminating its relationship with Alta-Waterford. The Company, and its officers and directors, have not made any payments to Alta-Waterford and the Company did not create, review, revise or approve any of the promotional emails and newsletters. The promotional materials sent to the Company by OTC Markets are largely devoid of factual statements, but one of the newsletters states that the Company is in the defense industry, which is not true. The Company’s breathalyzer interlock devices are used to monitor DUI offenders in the states were it is licensed, but is not currently used in the defense industry. Although the promotional materials do not make many erroneous factual statements, the promotional materials do make several buy recommendations regarding the Company’s common stock, as well as several forward-looking statements about the future prospects of the Company, which the Company does not believe are appropriate statements. The Company encourages anyone interested in the Company and its business to review the Company’s periodic filings with the Securities and Exchange Commission.
Whether the promotional materials had any impact on the trading activity of the Company’s common stock is not clear. The Company’s common stock traded around $0.24 to $0.26 prior to April 3, 2018, when the promotional materials are dated. On April 3, 2018 and April 4, 2018, the Company’s common stock traded between approximately $0.26 and $0.30, with volume increasing from around 10,000 shares a day to around 70,000 shares a day. The Company has not engaged any other company or person in relation to public relations, except the Alta-Waterford agreement detailed above.
Blow & Drive Interlock Corporation states definitively that the Company, its officers, directors and, to the Company's knowledge, its controlling shareholders (i.e., shareholders owning 10% or more of the Company's securities) did not see or review the promotional activity until it was notified by OTC Markets and was not involved with the creation or distribution of any promotional materials including these emails and newsletters. Additionally, upon inquiry of its officers, directors and its controlling shareholders, none of the officers, directors and, to the Company's knowledge, its controlling shareholders, have purchased or sold common shares of the Company on any stock exchange or electronic trading floor for at least the past 90 days.
The Company does not have any outstanding convertible instruments that that allow the holder to convert the amounts owed into shares of the Company’s common stock at a discount to current market rate at the time of issuance.
About Blow & Drive Interlock Corporation
BDIC manufactures and rents its breath alcohol ignition interlock device called the BDI-747/1, which is a mechanism that is installed on the steering column of an automobile and into which a driver exhales. The device in turn provides a blood-alcohol concentration analysis. If the driver’s blood-alcohol content is higher than a certain pre-programmed limit, the device prevents the ignition from engaging and the automobile from starting. BDIC is currently authorized and a licensed installer in Oregon, California, Arizona, Kentucky, Tennessee, Texas, New York, and Pennsylvania.
FORWARD-LOOKING DISCLAIMER
This report may contain certain forward-looking statements and information. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of mentioned company to be materially different from the statements made herein.