Investors Warned About Shady Pot Stocks
There are medical marijuana businesses in Canada that have solid plans to grow and sell medical cannabis.
But there appear to be many more with no actual connection to soil-based operations that are nonetheless issuing stock and baiting investors with what might be a risky place to put your cash.
That’s the contention of the Canadian Securities Administrators, which issued a warning about pot stocks yesterday. According to the CSA:
While some have touted medical marijuana as a significant new sector for investment, the CSA has observed a number of small or inactive reporting issuers announcing medical marijuana business plans. In many of these cases, just the announcement of intent to develop a medical marijuana business has resulted in an immediate rise in a company’s stock price. The CSA is concerned investors may face financial harm by purchasing such shares at an inflated price before there is a viable business.
Sounds familiar. There’s a pot gold rush going on. But some outfits don’t really have their hands on the gold.
What’s more, the Canadian Securities Administrators say, it’s not easy to legally grow cannabis in Canada:
Investors should be aware that companies cannot legally conduct a medical marijuana business without a licence from Health Canada, and that there is likely significant time and cost required to obtain such a licence.
The U.S. Securities and Exchange Commission has also alerted investors to potentially shady stock issues.
You can find out which firms have legitimate licenses to grow in Canada here. And, as always, whether your on a back street or on Wall Street, buyer beware.
Crime in Denver Decreases After Pot Legalization
The following article fist appeared in The 420 Times.
It’s been more than three solid months since the first legal recreational sales of marijuana began in Colorado.
The end of the world didn’t come. Anarchy did not ensue. And long-haired rapists have yet to roam the streets of the Denver, the state’s largest city.
Despite predictions of dire outcomes, usually from law enforcement types and folks on the right side of the political spectrum, some key crimes in the Mile High City actually declined compared to the same time last year.
The city of Denver released its latest crime stats this week.
Among them, a two-thirds reduction in homicides from January 1 through the end of February versus that same time frame in 2013.
There was a 12.5 percent reduction in sexual assaults, a 7.2 percent decline in robberies, and a whopping 43.5 percent decrease in car break-ins.
There were a few sore spots, including a huge increase in arsons (109.1 percent!) and a slight increase in burglaries (1.9 percent). But major crimes overall were down 12.9 percent, according to the city’s stats.
Legalization critic Henny Lasley said it’s too soon to judge: “We’ve had three complete months of retail marijuana. It’s a pretty short window.”
Strange. It wasn’t too soon for people like him to judge in the years leading up to legalization. And marijuana sales and taxes have been quite healthy for Colorado in 2014. It’s not as if people are staying away from collectives or cannabis. If crime is the natural result of medicating, why would it wait? What’s it doing — pushups?
To the contrary: After legalization, Denver appears to have mellowed out quite well.