CANNAINVESTOR Magazine March / April 2017 - Page 62

Shares of NGBL reached $215 on November 15, 2012 and at the time of writing were trading at $0.0003. This is a real example of the real danger that is lurking in the weeds.

NOVEMBER 2012: NOVEMBER 2012 NOTIS/MEDBOX

MARCH 2017: MARCH 2017 NOTIS/MEDBOX

Other recent fraud charges levied by the SEC include:

2015:Charges laid against promoters of two cannabis companies: GrowLife, Inc. (OTC: PHOT), and Hemp, Inc. (OTC Pink: HEMP). 2015 SEC Charges

2016:Marijuana-Related Company Charged with Scheming Investors. As reported in a 2016 article, trading of this company’s shares had been suspended since 2014: FusionPharm (OTC: FSPM). 2016 SEC Charges 1

SEC Announces Fraud Charges Against Colorado Company Focused On the Marijuana Industry. Infinex Ventures, Inc. (OTC:INFX) and its CEO Ronald Salem. 2016 SEC Charges 2

Retail Investors are not the only victims. There are many other stakeholders including legitimate companies that are collateral damage as those lost capital dollars to fraud and mismanagement could have been invested in legitimate well run ventures. It also may taint the industry making it more difficult to raise capital without a greater premium demanded by investors and lenders. Being familiar with the requirements to list on microcap exchanges may assist Retail Investors. SEC - microcap fraud

Retail Investor's Perspective

62