The SEC suspended two cannabis stocks this morning through June 5th, including Eco Science Solutions (ESSI) and Holy Grail Company (HGRL). According to the SEC, ESSI issued a press release on May 5th that caused the agency to have questions about its accuracy. ESSI has been one of the most active stocks to date in 2017 and had performed well until recently. Seeking Alpha contributor Bart van Zelzen has been highly critical of the company, warning investors as recently as last week.
HGRL is a recent reverse-merger that most investors most likely don’t know. The SEC shared its rationale for the suspension:
It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Holy Grail Company because of questions concerning the accuracy and adequacy of publicly available information about the company, including, among other things, the control of the company.
Last week, the SEC suspended a company tied distantly to the cannabis industry, Digital Brand Media & Marketing Group (OTC:DBMM), a company that had a working relationship with American Green (OTC: ERBB) that it detailed in a 2014 press release. Since 2014, when it moved to suspend trading in more than a dozen names, there have been few suspensions in the cannabis sector by the SEC.
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Based in Houston, Alan leverages his experience as founder of online communities 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV.
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