Retail Investor's Perspective
It would appear that CANNAINVESTOR Magazine was correct in selecting KWFLF as a Top 25 Short Term Stock Pick on May 17.
Was this an intentional attempt (and that is not known at this time) to manipulate the share price of KWFLF and/or to harm the company’s reputation? As with most stories, there is usually a grain of truth to be found. In this case, there are certain shares on the books at a low price and, in error, an innocent but reputable third party reported that such paper would become free trading on May 26th and suggested this could have a detrimental effect on the share price. An apology and a full retraction was provided by that source - but this initial and incorrect reporting on its own may have been the impetus needed. It is not for me to speculate on any entity’s motive and/or intent in this matter; however, on May 31st, KWFLF announced that its legal counsel had initiated an investigation into the matter. The above is a snap shot in time because events are unfolding. According to a press release by KWFLF on June 5, this campaign of false and misleading information caused a $50M-$80M potential financing to be terminated and the shares of KWFLF to be halted that same day. However, on June 6, KWFLF announced a $50M private placement albeit with different pricing. As at the time of writing, the share price of KWFLF was $0.75 – virtually unchanged from the May 16th price and as we know it has been a somewhat overall bearish period.
The findings of any investigation into this matter may prove precedent setting. Regardless of the risk tolerance of any investor with respect to any given industry, sector, or company – daily turmoil tends to be something investors shy away from and time will tell if the share price retreat was a result of adverse false and/or misleading rumors or not. Please note that there is an exclusive Q&A with Hugo Alves, President of Cannabis Wheaton Income Corp, within this issue.
This recent example serves as a reminder of the minefield that stands in the path of investors and the industry itself.