Cannabis Microcap Investors Beware! Plus, 3 Microcap Cannabis Stocks to Watch

The SEC recently issued another warning for cannabis investors concerning false COVID-19 statements made by microcap companies.

In its warning, the SEC said, “Investors should be aware that false statements may be made – including in company press releases, promotional materials, and social media posts – about a company offering or developing products that prevent, detect, or treat COVID-19, in order to inflate the value of a company’s stock.”

During the ongoing COVID-19 Pandemic, the SEC has brought enforcement actions against numerous companies that claimed they had effective products against the Coronavirus.

The SEC also says it has suspended trading of “dozens of companies” due to their COVID-19 statements.

How to Avoid Investment Scams

To keep from falling for false claims, the SEC recommends that investors do extensive research into a company before investing. Never base an investment decision on a press release or online research report. 

In many cases, particularly with microcap companies where available information is often scarce, companies may make false claims as a part of what is called a “pump and dump” scheme.

The SEC says this type of scheme is where promoters “pump up” a stock by spreading false rumors and then “dump” their own shares while the hype surrounding the stock is high.

Always Research Microcap Stocks Thoroughly

To help you with your research efforts, here are three microcap cannabis stocks that appear to be doing things the right way and could see strong growth in the future:

  1. RIV Capital Inc (OTCMKTS: CNPOF). Stock price 0.53 USD, Market Cap 99.20 Million CAD (Jun 15, 2022).

In early June, this company announced the acquisition of Etain, a key step to becoming a licensed, vertically-integrated U.S. cannabis operator. The company also reported strong liquidity and a robust balance sheet in its fourth quarter and fiscal year financial results.

  1. TILT Holdings Inc., (OTCMKTS: TLLTF). Stock price 0.18 USD, Market Cap N/A (June 15, 2022).

This global provider of cannabis business solutions, including inhalation technologies, cultivation, manufacturing, processing, brand development, and retail, announced on June 13 that its Timeless Refinery vaporization products are now available to medical patients in Ohio.

  1. Rocky Mountain High Brands, Inc. (OTCMKTS: RMHB). Stock Price 0.022 USD, Market Cap 7.76 million USD (June 15, 2022).

The company recently announced that a leading operator of discount variety stores that consumers know and trust will carry the company’s Great Choice’s pediatric electrolyte grape and fruit flavors in 16.9 oz bottles.

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