The Securities and Exchange Commission has suspended trading in several marijuana-related companies, including Advanced Cannabis Solutions and Growlife.
The reputation of publicly-traded marijuana firms was already shaky after the Financial Industry Regulatory Authority (FINRA) warned of “potentially fraudulent” marijuana companies last year.
Advanced Cannabis says it all has to do with a rogue shareholder who apparently sold shares illegally. “We’re just moving ahead, a spokesman said, “We closed recently at just under $23, and when the stock halted it was $30. We’re continuing as a business. People have confidence in our stock, or else we would have been completely flattened. We’re not out there on Facebook telling people to buy our stock, or talking about it on bulletin boards.”
Part of the problem is that there is a bubble in the market right now, and the SEC and FINRA are concerned. Public shares are down 30% in this sector since the first of the year.