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SEC Suspends Pot Stock Advanced Cannabis Solutions/General Cannabis

General Cannabis, formerly known as Advanced Cannabis Solutions, is a service provider based in Denver, CO, that provides consulting and assistance to cannabis-related companies for production, cultivation and retail operations. (The company does not actually grow crops.)

Like any company offering securities for sale, Advanced Cannabis was required to supply certain types of company information. It was listed on both the OTC Bulletin Board and OTC Link, “alternative stock exchanges” to the NYSE and NASDAQ.

Any company that trades securities on these platforms have to meet strict requirements and qualifications, and are required to answer to a regulating agency such as the SEC or the FDIC. Securities are traded directly by dealers. Penny stocks, shell companies, or in bankruptcy are not traded here.

The SEC Has Proposed New Regulations for Fiduciaries on silverlaw.comOn March 27, 2014, the SEC temporarily suspended trading on Advanced Cannabis because of a lack of information on the company’s securities, as well as questions regarding unregistered affiliates and shareholders possibly engaging in unlawful distribution of securities. There were also questions as to whether “certain undisclosed affiliates and shareholders of Advanced Cannabis common stock engaged in an unlawful public distribution of securities.” Trading resumed on April 25, 2014.

The company announced the name change to General Cannabis in a press release on March 5, 2015.

Currently, General Cannabis (CANN) trades in the OTCQX marketplace, a forum for over-the-counter stock trading.

The SEC warns that while many cannabis-related companies and securities are legitimate, it’s up to the investor to cover due diligence before buying, even inexpensively priced stocks. You can review a company’s offerings on the SEC Edgar website, as well as contacting your state securities regulator to find out if it has been registered.

Be cautious of any warning signs that indicate a possible fraud:

  • Guaranteed Returns
  • No income or net worth requirements
  • High pressure sales to buy immediately
  • Offers received via email, social media or other unsolicited manner from someone you don’t know

Is Advanced Cannabis/General Cannabis In Your Portfolio?

If you’ve invested in a “pot stock” and aren’t sure if it’s the real thing, contact us for a free consultation. 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.

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