The SEC suspended two cannabis stocks: Eco Science Solutions (ESSI) and Holy Grail Company (HGRL). According to the SEC, ESSI issued a press release on May 5th that caused the agency to have questions about its accuracy. ESSI has been one of the most active stocks to date in 2017 and had performed well until recently.
HGRL was suspended, according to the SEC, because: "There is a lack of current and accurate information concerning the securities of Holy Grail Company because of questions concerning the accuracy and adequacy of publicly available information about the company, including, among other things, the control of the company."
One wonders why investors continue to pour money into questionable cannabis companies, especially when there are some very fine businesses in the sector that are doing things right, earning profits, and steadily growing revenues.
Kush Bottles (KSHB) is one company that is setting the bar high and operates with the highest standards and integrity. Ironically, the company just completed an acquisition that will effectively double its revenues, yet its stock has been falling.
There is no accounting for wisdom in the stock market.
Why some companies that have very questionable financials attract investor interest, and other companies that have solid growth and strong performance with audited and verified financials, seem to go un-noticed, is anyone's guess.