Petrotech Oil & Gas Inc. (PTOG) is a company based in Bedford, TX, and claims it is involved in petroleum recovery from oil wells that are considered “empty.” Using their own extraction technology with CO2 and N2 called “Gas-Injection EOR” (Enhanced Oil Recovery), Petrotech is able to recover 20% or more than previously thought possible.
On February 19, 2014, the company announced that it would also be entering the legal cannabis market in Washington and Colorado, causing their stocks to surge. Petrotech’s deal created subsidiary Legalizepot.us Management Group, Inc. (the site is now a blank page.) LP.US Management was intended to manage the growing companies where cannabis became legal, starting with Washington and Colorado.
On March 14, 2014, the SEC suspended trading for the company “because of questions that have been raised about the accuracy and adequacy of publicly disseminated information concerning, among other things, the company’s operations.” Trading resumed on March 28, 2018. The company was in the process of completing a 2-year audit to comply with SEC reporting standards to achieve full reporting status.
The company also announced plans to feature hemp-based consumer products in physical stores, such as clothing, blankets, towels and cosmetic items with the “Legalize Pot US” label and logo. Petrotech’s website currently contains no information about its cannabis enterprise.
The SEC reminds investors that stocks related to the cannabis industry may not be suitable for investors who aren’t familiar with it. Fraudulent individuals will utilize something new to perpetuate a scam or fraud with unsuspecting, unfamiliar investors. Additionally, while marijuana is only legal for medical use in 30 states, and for recreational use in 9 states, it is still illegal on the federal level. It is possible that a cannabis-related company could be subjected to criminal prosecution.
Microcap and penny stocks are sold by companies that frequently have very little information available about them. The companies may be so new that they have no revenue, no information available, or are involved in untested technologies. These stocks are usually traded on the OTCBB or the OTC Link LLC, and don’t have listing requirements. These stocks are generally not the NASDAQ or NYSE.
If someone is offering you a stock with a “guaranteed return” or they’re urging you to “buy right away,” especially involving cannabis, it may not be legitimate. Use the SEC’s Edgar site, or check with your state securities regulator. Many pot stocks are unregistered, and you could lose your entire investment. Make sure you understand the company’s business and what it offers, whether cannabis-related or not.
Interested In Pot Stocks?
Penny pot stocks can be a great start or a great catastrophe for your portfolio. If you have questions about a marijuana-related stock that your broker convinced you was a good buy, talk to us. Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida, and represent investors nationwide to help recover investment losses due to stockbroker misconduct and other investment-related wrongdoing. Most cases handled on a contingent fee basis. This means that you won’t any pay legal fees unless we are successful. Call us toll free at 800-975-4345, or use our online contact form to get in touch.