Netcapital Inc. (NASDAQ:NCPL). As previously disclosed, Netcapital Inc. received a Wells Notice from the staff of the U.S. Securities and Exchange Commission relating to an investigation involving the Company and certain current and former directors, officers, and other individuals.

I joined Netcapital after the Company received the Wells Notice, with a mandate to provide guidance on potential regulatory and other challenges it faced, assist in protecting shareholder interests to the best of my ability, and position Netcapital for its best possible future given the historic challenges that happened before I became employed.

The SEC has now filed a civil complaint against certain individuals and the Company. The allegations in the complaint have not been adjudicated. We recognize the seriousness of this development and the concerns it may create for our shareholders.

Over the next seven to ten days, I will be working with our Board of Directors and legal advisors to carefully review the complaint, assess its implications for the Company, and determine appropriate actions to protect Netcapital and its shareholders. Following that review, we intend to provide shareholders with an update regarding the steps we are taking to address these matters, and other matters in an effort to strengthen the Company.

Throughout this process, Netcapital remains focused on serving its customers and operating its business. Our employees continue to deliver a high-quality experience to our customers, and I have confidence in our team’s commitment to building a different company.

The filing of the complaint does not change our responsibility to operate the business, evaluate strategic opportunities, pursue appropriate transactions, and make decisions we believe are in the best interests of the Company and its shareholders.

The individuals named in the complaint may choose to address the allegations against them separately. The Company will speak for itself.

Because this matter is now subject to pending litigation, we do not intend to litigate the SEC's allegations in public. We will make disclosures required by applicable law and provide appropriate updates concerning material actions taken by the Company.

Current management intends to address these issues deliberately and professionally, with the advice of our legal and other professional advisors and with the interests of the Company and its shareholders at the forefront.

We expect to provide shareholders with a further update following our initial review.