A much more detailed update be found here.
Update 9:00 a.m. PDT: Clarified the reason why regulators stopped trading.
The authorities that govern one of Sweden's stock markets has halted trading in Global Gaming Factory X, the software company that is due in less than a week to complete an acquisition of The Pirate Bay.
Swedish authorities said Friday that they stopped the trading because of questions about Global Gaming's financing and its ability to complete the acquisition.
"Global Gaming Factory has not provided information showing that the full amount is secured," Aktietorget, the market where Global Gaming's stock trades, said in a statement. "Aktietorget found that the conditions for an effective trading is not present and decided to suspend trading in (Global Gaming) shares until the requested information was provided."
SVD, one of Sweden's largest newspapers, reported that regulators had begun an investigation into possible insider trading involving Global Gaming's stock back in June, when the company first announced the potential acquisition. Aktietorget said in its statement that Friday's halt of trading in the company had nothing to do with insider trading.
"It is our duty to examine trade in the context of large price-sensitive news," Peter Gönczi, vice president of Aktietorget, the stock market where Global Gaming's shares are traded, told SVD. "We saw that there was a risk that information had leaked."
News of the investigation comes a day after one of the main players in the proposed new Pirate Bay expressed doubts about Global Gaming's ability to carry on with a new Pirate Bay site.
Johan Ljungberg, CEO of Peerialism, told CNET News that his company has not received money from Hans Pandeya, Global Gaming's CEO, since being contracted to start some of the production work on the new site two months ago. In June, when Pandeya announced his intention to buy The Pirate Bay, he also said he would acquire Peerialism, a Swedish maker of software that improves the transferring and storage of data over peer-to-peer networks.
Pandeya did not respond to repeated interview requests.