By Ryan Elmore
As the cannabis industry grows, investors should be prepared to see more and more of the new startups spectacularly implode or at least fall by the wayside. But whereas a small cannabis business failing may not make too many headlines, the downfall of some of the more established non-cannabis businesses trying to (sometimes unlawfully) cash in on the hot new industry will almost always be a story.
Right now, that troubled business comes in the form of stock promoter SeeThruEquity and the new charges being filed against them by the SEC. But how does a stock advisory company based in New York make the cannabis news cycle all over the country? Well, they’re being accused of committing fraud by “recommending” low-probability cannabis stocks that they’d recently purchased at a bargain and then selling them to clueless investors.
Without getting bogged down in the details, reasons like this are exactly why transparency within a cannabis company is extremely important. Here at Gladbrook Holdings, we’re confident in what we’re doing and want to show investors exactly what their money is going toward. Of course, we’re also much happier investing in our own operations and improving our own assets rather than throwing money at other companies in hopes of making a couple of successful stock plays.
All across the cannabis industry, you’re seeing business purchase and take over bits and pieces of other companies in an attempt to grow their market share (particularly with giants like MedMen). That’s not going to change anytime soon, but we believe that every transaction we make — whether with investor money or our own — should be kept within arm’s reach and unequivocally for the good of the company rather than attempting to line our pockets a little more.