Marijuana Investors Beware: SEC Warns Traders Of Fraud In The Industry

The SEC posted a press release warning investors of fraud in the sector Friday morning, following the seventh trading halt in two months in the marijuana sector.

The press release warns of "potential fraud in microcap companies that claim their operations relate to the marijuana industry," which confirms sector speculation that more halts are to come. The Microcap Fraud Task Force of the SEC Enforcement division will continue to "Scour the microcap market and proactively [identify] companies with publicly disseminated information that appear to be inadequate or potentially inaccurate." 

The fact that the SEC is pursing companies with inadequate or inaccurate information puts almost the entire industry at risk of being halted. A majority of marijuana stocks are traded on the Pink OTC market, where the required financial disclosure is incredibly minimal.

Related: Colorado Legislature Approves Banking System For Marijuana Businesses

Along with the press release warning investors of fraud in the sector, the SEC also posted a page titled "Investor Alert: Marijuana-Related Investments," which is basically the SEC version of a guide to investing the the marijuana industry. The alert notes in the opening paragraph how frequent haltings have become  and heavily stresses the risk involved in investing in the volatile marijuana market. It warns of investing in companies that have previously been halted by the SEC, securities that are used in pump-and-dump email scams, companies with large amounts of insider holdings, and frequent (and exaggerated) press releases. It also warns of unregistered offerings, which is very concerning considering many companies in the sector have never filed any documents with the SEC.

Since March, Cannabusiness Group CGBI, Growlife PHOT, Advanced Cannabis Solutions CANN, Aventura Equities AVNE, Citadel EFT CDFT and Petrotech Oil and Gas PTOG have all been brought to a halt.

As of Friday morning, Fusion Pharm FSPM became the seventh stock halted in the sector in under three months. The SEC press release noted that five marijuana-sector stocks have been halted, but it has actually been seven. 

Until Friday morning, all of the press releases announcing the halts have been vague, giving traders very limited information about what they are investigating.

The Fusion Pharm press release was the most specific, stating that the security was halted because the company was lacking "current and accurate information about the company because of questions that have been raised about the accuracy and adequacy of publicly disseminated information concerning, among other things: (1) the company's assess; (2) the company's revenues; (3) the company's financial statements; (4) the companies business transactions; (5) the company's current financial condition."  The commission also advised traders to considering forgoing any information provided by the company that is currently available or is being made available in the coming days. 

To learn more about the marijuana industry, check out the 420 Investor and the Benzinga Marijuana Index

Posted In: halted stockmarijuanaSECTrading HaltNewsPoliticsMoversGeneral

11 Best Black Friday Deals on Amazon

11 Best Black Friday Deals on Amazon

The best Black Friday deals from Amazon are still coming hard and fast because the holiday is not yet upon us and the mega-retailer prefers to keep consumers on the hook for as long as possible—spending as much money as possible. 

To that end, here are some of the best Black Friday deals from Amazon that you might want to consider today.

Calphalon 10-Piece Pots and Pans Set

Regular Price: $172

Sale Price: $138.88

Calphalon’s 10-Piece Pots and Pans Set is designed with stainless steel, stay-cool handles along with pour spouts. The nonstick surface is PFOA-free and built with hard-anodized aluminum that is both durable and conducts heat extremely well. The set includes 2 fry pans, a sauce pan with cover, saute pan with cover and large stock pot with cover.

Apple AirPods 2nd Generation

Regular Price: $144

Sale Price: $85.49

The 2nd Generation AirPods from Apple connect to all Apple devices and give you an enhanced listening experience. Plus, they come with a case that keeps them safe and allows you to charge them in a secure environment. With over 24 hours of battery life, access to Siri and easy setup, you can start listening to your favorite tunes or podcasts today.

Adidas Ultraboost 21 Running Shoes

Regular Price: $129.98

Sale Price: $89.98

The Adidas Women’s Ultraboost 21 running shoe is perfect for anyone who likes a short run, maybe a 5K, half marathon or more. Coming in several colors and styles, you can slip these shoes on, enjoy the cushioned outsole, sink into the supple insole and secure laces.

Ninja AF101 Air Fryer

Regular Price: $129.99

Sale Price: $97.83

The Ninja AF101 Air Fryer allows you to crisp, roast, reheat and even dehydrate food products faster and cheaper than ever before. It has a 4-quart capacity and offers a wide temperature range along with several time settings so that you can customize each dish to your needs. Plus, all the parts are dishwasher safe.

Beats Solo3 Wireless On-Ear Headphones

Regular Price: $199.95

Sale Price: $99

Beats by Dr. Dre are among the best headphones on the market, and the Solo3 Wireless On-Ear Headphones include the Apple W1 chip, Class 1 Bluetooth and 40 hours of battery time. These headphones even have a built-in microphone and offer an adjustable fit so that you can be comfortable whether you’re listening to an Android or iOS device.

Hoover Power Scrub Deluxe Carpet Cleaner

Regular Price: $198.98

Sale Price: $175.98

The Hoover Power Scrub Deluxe Carpet Cleaner allows you to keep your home spotless and clean up after your pets. The cleaner comes with the Hoover Paws and Claws Deep shampoo and a storage mat to keep the floor dry once it’s put away.

LG CordZero Auto Empty Cordless Stick Vacuum

Regular Price: $999.00

Sale Price: $851.71

The LG CordZero Auto Empty Cordless Stick Vacuum and Wet Mop All in One Tower is designed to work in homes with several pets or children and clean up all the messes that life brings. The battery lasts up to 2 hours, and there’s an extra removable battery that gives you even more cleaning time and power.

Breville Fresh and Furious Blender

Regular Price: $278.60

Sale Price: $199.95

Breville, a top name in blenders and juicers, offers the Fresh and Furious Blender, featuring 50-ounce capacity, Vac Q technology, pre-programmed cycles, LCD display and lid with pull ring. With the Fresh and Furious Blender, you can make everything from a smoothie to a soup and everything in between.

Hot Tools Professional 2000 Turbo Ionic Hair Dryer

Regular Price: $89.99

Sale Price: $55.63

The Hot Tools Professional 2000 Turbo Ionic Hair Dryer is designed for professional use, but it works perfectly in the home. With 1875 watts of power, 6 heat and speed settings and a lightweight design, you can easily style your hair and utilize the diffuser, cut back on the frizz and stretch the 8 ft cord for maximum functionality.

Columbia Heavenly Long Hooded Jacket

Regular Price: $160

Sale Price: $97.38

The Heavenly Long Hooded Jacket from Columbia is designed to be light for everyday use, but it’s heavy enough to protect you from the cold. The plush fleece lining, security pocket, water resistant fabric, 2-way zipper, and zippered hand pockets make the jacket both protective and functional.

ConAir InfinitiPro Hair Dryer

Regular Price: $49.99

Sale Price: $29.99

ConAir is one of the biggest names in hair and beauty, and the InfinitPro is an 1875 watt hair dryer designed for professionals with ceramic technology. The dryer comes with a diffuser and concentrator, and it allows you to blow out your hair just the way they would at the salon.

Deals the Experts Are Hoping For

Experts believe that Amazon’s Black Friday sale could linger for quite some time. It all started with the Prime Early Access sale on October 11 and 12. Previously, Amazon has offered the “Epic Deals” sale that ran through late October. 

This is to say that any sale could come up at any time. 

Even so, those monitoring Amazon are looking forward to a few potential deals, including:

  • Apple Watch
  • AirPods (any generation)
  • MacBook Pro
  • Large, underpriced TVs
  • Amazon Echo
  • More small home appliances (Dyson or Shark vacuums, Instant Pots, etc.) 

While these predictions are based on last year’s Amazon Black Friday Sale, it’s important to remember that most Black Friday sales are fairly consistent and push the products that are most likely to sell.

 

Featured image sourced from Shutterstock

Posted In: Partner ContentGeneral