Beware the OTC Market

pair of dice with stocks and shares news in background
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.

About Douglas Slain

Doug received a JD from Stanford Law School, a MA from the University of Chicago, and a BA from DePauw University (Phi Beta Kappa). After practicing real estate and finance law at then Pillsbury, Madison & Sutro, he founded four national monthly law reporting titles now owned by Thomson-Reuters. He served two consecutive terms as chairman of the American Bar Association’s General Practice section’s Professional Responsibility Committee. Slain was an ABA-appointed rule of law consultant to the Ministry of Economy for the Republic of Latvia as its secured transactions adviser. He taught briefly at Stanford Law School as an adjunct clinical law professor. Slain has been the managing partner of Private Placement Advisors since August 2009. In January 2013 he founded Outliers Network.

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