Wednesday, March 27, 2019

LTFRB cautions public from investing in Yellowdot

LTFRB cautions public from investing in Yellowdot
March 28, 2019 / 12:08PM


The Land Transportation Franchising and Regulatory Board (LTFRB) yesterday issued a notice to the public cautioning them from accepting investment offers from Yellowdot Transport Terminal Inc., citing the company's lack of license to do so from the Securities and Exchange Commission (SEC).

Yellowdot is a transportation company specializing in modern PUV operations in parts of Metro Manila and Northern and Central Luzon, including the SM Fairview-SM Masinag and Cogeo-SM Aura routes.

In its notice, the LTFRB stated that Yellowdot representatives confirmed in a board meeting that their company accepted investment from the public on the purchase of the "Millenial Jeepney", a type of modern PUV.

Upon review of their investment offering, it was revealed that Yellowdot promised "unusually high" return of investments from the income of operating said units.

However, the SEC disclosed that Yellowdot's Articles of Incorporation explicitly prohibits the company from soliciting investments from the public.

The LTFRB has thus ordered Yellowdot to cease and desist from accepting any more investments from the public "until they comply with existing laws and regulations."

Yellowdot has not released a statement regarding the issue yet, but assures its commitment to "provide what they have promised" to stakeholders and help commuters.

Source:
LTFRB Central Office's post: https://www.facebook.com/ltfrb.central.office/posts/2278036185771630


Also in Facebook: https://www.facebook.com/philbusbulletin/posts/2542932925736284

No comments:

Post a Comment

Our YouTube channel is up and running

Hello everyone! Our YouTube channel is up and running with our first content, a vlog of Rubygem's ride in JoyBus. You may check out his ...