CSA Investor Alerted That Caution Should Be Measured For Those Planning For Medical Marijuana Stocks Investment

The Canadian Securities Administrators (CSA) is urging investors to be cautious when considering investing in medical marijuana penny stocks. A significant number of reporting issuers have announced their intention to begin growing and selling medical marijuana, in conjunction with new regulations enacted by the Government of Canada as of April 1, 2014. 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. Investors should be aware that companies cannot legally conduct a medical marijuana business without a license from Health Canada, and that there is likely significant time and cost required to obtain such a license.

To read more, visit http://www.sacbee.com/2014/06/16/6487029/csa-investor-alert-caution-urged.html

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