PI Financial suspends coverage of Reliq Health Technologies

Following the restatement of its financials in October and subsequent litigation in the time since, PI Financial has suspended coverage of Reliq Health Technologies (Reliq Health Technologies Stock Quote, Chart TSXV:RHT).

On October 16, Reliq announced it was intending to restate aspects of its financial information for the quarter ended March 31, 2018, saying that the decision followed an audit which revealed problems over the “timing and certainty of receiving the revenue invoiced to clients.”

The company’s stock, which had traded as high as $2.44 in late February of 2018 immediately fell to the twenty-cent range and has not recovered.

In late October, PI analyst David Kwan placed RHT “Under Review” after previously having a “Buy” rating and one-year price target of $2.60 on the stock.

Yesterday, Kwan suspended coverage of the stock completely.

“We are placing the Company under suspension due to recent performance issues including the restatement of revenues in its financial statements,” the analyst said. “Our previously published estimates and ratings should no longer be used or relied upon. Effective immediately, we have no rating or target for Reliq Health Technologies.”

On February 26, Reliq announced it had served actions against several former employees pertaining to “…among other things, misrepresentation, fraudulent conduct and inducing breach of contract by the Individuals, relating to events that resulted in the restatement of the Company’s financial statements on October 16, 2019.”

At press time, shares of Reliq Health Technologies were up 4.2 per cent to $0.25.