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.
