A former #chair of #Canadian #cannabis producer #WeedMD illegally tipped off a longtime acquaintance about an unannounced greenhouse deal, which led to insider #trading, #Ontario’s securities regulator has alleged.
Michael #Kraft, then-chair of WeedMD, now called Entourage Health, “tipped his acquaintance Michael Brian Stein about an upcoming expansion by the company before it was generally disclosed,” the London Free Press reported, citing a statement of allegations by the Ontario Securities Commission (OSC). According to the allegations, “armed with knowledge of material non-public information, Stein purchased #shares of WeedMD on November 21, 2017, the day before the announcement. Following the announcement, Stein sold all of the WeedMD shares he had purchased for a return of nearly 43%.” The allegations haven’t been tested before an OSC hearing. However, penalties sought by the OSC include, barring Kraft and Stein from trading in any securities or derivatives permanently, or for a yet-to-be established period.
Barring the two from acting as director or officer of any issuer permanently, or for a yet-to-be established period, and the application of an administrative penalty of not more than 1 #million Canadian dollars ($750,000) for each failure to comply with Ontario securities law.
An OSC hearing to determine penalties will be held at a later date and the OSC panel is yet to deliver its decision on the other allegations.