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Editor
@Louis. Kyron
The scam artists then sell off their holdings and make a huge profit.
Your investment is practically worthless and no one wants your securities. You lose your money.
Be wary of anyone who gives you a so-called “hot tip” on these investments! They no doubt stand to make a profit... at your expense!
Sounds daunting and intimidating but because of the precarious legal status of cannabis here in the USA the OTC is often the only market available for completely legitimate companies that otherwise could be eligible to be listed on a major exchange. How do you weed them out? It is difficult but subscribing to CannaInvestor Magazine helps and the Stock Lists each month provide you with companies to consider further due diligence on. Some are large companies with only a toe in this industry at this time. Avoid social media and bulletin board USER IDs who are over promotional or sour. There is a reason they hide behind personas with names more suited for the square circle.
When reading published materials by others scroll through it before reading it to see if the company is a paid client. Statements limited to words to the effect of that the writer/author does not own shares in the company is insufficient as it technically skirts warrants, options, rights, gifts in kind (vacation, etc) and direct payments. Such authors often also write articles about non-clients and industry trends either out of genuine good intention or to throw you off the scent that they are in fact paid promoters. Either way, be assured they are not promoting any arms-length company that is in conflict with their client(s) and any industry article they write be assured their client(s) are well positioned – the downside is they tend to not write about other aspects of the industry that their client may not benefit from. I recently had the misfortune of reading an overly bearish sentiment article where the true intent of the article was to get readers to subscribe to their content. The disclaimer at the bottom was more than the typical one (errors and omissions, small errors, timeliness, not investment advice, not responsible for third party content, etc) as it also stated that they are not responsible for the accuracy of their own content. Another reason why one should scroll down before reading such opinion pieces that try to disguise ulterior motives.