A tiny, Toronto-primarily based organization is warning investors to preserve their eyes peeled for a “speculative” promotional e mail that they say is a scam.
The Canadian cannabis cultivator, Two Hands Corp., at present trades on more than-the-counter stock markets as TWOH. Two Hands says it was unaware of the campaign advertising its organization till it was alerted to the situation by OTC Markets. They mentioned the e mail was sent from an “unreliable source” and that they did not have editorial handle more than it.
Shady promotional activities have been an ongoing difficulty in Canada’s turbulent cannabis stock market place. Back in December, the Canadian Securities Administrators (a group of stock market place regulators) warned publicly traded organizations in newer industries, cannabis incorporated, that there was a threat of “problematic promotional activities” that could artificially boost share costs and place investors at threat.
“We do see a larger incidence of problematic practices amongst venture issuers, and especially amongst issuers involved in emerging industries like cannabis, fintech and battery metals,” commented the Canadian Securities Administration.
- For reference, right here are some examples of misleading promotional activities:
- Circulation of advertising and marketing components, presentations, social media posts, or other documents that exaggerates the possible of early stage business enterprise plans.
- Sending out many press releases that do not divulge any new info.
- Paying for third celebration advertisers who use social media and common investing blogs but refuse to disclose their agency or economic interest.
- Announcing alterations to the name or business enterprise without the need of providing a supporting business enterprise strategy or extensive threat disclosure.
- Suggesting that an entity house holds robust possible for improvement with delivering feasible proof.
- Relying on projected peak income as an alternative of lengthy-term commodity costs.
- Suggesting that a house has a precise fair-market place worth without the need of providing a supporting report for proof.
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