Last week, the California Cannabis Commission filed suit in the Central District of California against a group of individuals and companies for securities offering fraud and other violations of the Exchange Act. The lawsuit outlines how nine issuer entities and their principals/control persons raised over $25 million from more than 400 investors in the 2017-2019 time-frame to supposedly finance the establishment of a licensed marijuana farm and CBD extraction facility in Salinas, California. While soliciting investments, the commission argues the defendants misled and deceived actual and potential investors about their potential return on investment. Furthermore, none of the securities offerings were registered with the Commission.
– Cannabis Business Executive – Cannabis and Marijuana industry news, 08/04/2020 8:42:05 AM