Reno-based Altair Nanotechnologies says it's uncertain where it stands with Securities and Exchange Commission, and the uncertainty is getting in the way of its business.
The publicly held company disclosed in a SEC filing this month that regulators were asking questions last year about a press release issued by Altair that caused the company's stock to spike upward.
After the press release in February 2005, the stock, which had been trading at about $2 a share, rose to about $5 in a matter of days. It's been trading at about $3 recently.
The SEC asked Altair for information in late March of 2005. In August 2005, the SEC came back with requesting information about Altair's battery-development program and other transactions. The SEC also asked for e-mails and information about conference calls conducted by Altair executives with investors.
"We have not been contacted by the SEC since providing all requested information in October 2005 or been notified of any ongoing activity or pending proceeding," the company said in its quarterly filing with the SEC.
In an interview, Altair President and chief Executive Officer Alan Gotcher said regulators didn't require that the company publicly disclose the SEC inquiry.
But after a year, he said, executives were motivated by a spirit of full disclosure to let investors know about the SEC request.
The company said that the SEC frequently doesn't tell a company whether an investigation is continuing. The SEC didn't respond to an e-mailed request for comment.
The resulting uncertainty, Altair executives said, hurts their business.
"Our response to the SEC inquiry diverted considerable financial and human resources, which harmed our ability to execute our business plan for a time," the company said in its quarterly report.
The uncertainty, the company said, may harm its ability to nail down deals, recruit staff and raise capital.
Altair is developing nanotechnology materials for uses that range from batteries for electric cars to chemicals that help keep swimming pools clean.
