This morning at about 9:00 AM the SEC suspended trading in Fortitude Group Inc (FRTD), the seventh suspension of a marijuana stock this year. FRTD joins FSPM, PHOT, CDFT, PTOG, AVNE, and CANN on the list of marijuana stocks that have been suspended by the SEC this year. FSPM will begin trading again at the open on June 2nd. In connection with the suspension the SEC issued an investor alert about penny stock fraud in marijuana companies.
SEC suspension press release (PDF)
SEC suspension order (PDF)
The suspension of FRTD should not be a surprise to anyone who follows me on Twitter — I predicted it four days ago after the company put out a horribly sketchy press release about a buyout offer from an unnamed OTCQB company that valued FRTD at $0.12.
I give $FRTD two weeks tops before an SEC trading suspension following their absurd buyout PR http://t.co/QME6gBhCGs
— Michael Goode (@goodetrades) May 19, 2014
From the SEC press release:
The Commission temporarily suspended trading in the securities of FRTD because of
questions that have been raised about the accuracy and adequacy of publicly disseminated
information concerning, among other things, the company’s operations.
The Commission acknowledges FINRA’s assistance in this matter.
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