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Rosen Law Firm Alleges CannaVest Corp. Issued Material Misleading Business Information

Monday, 14 April 2014 09:27 AM

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On Apr. 11, the Rosen Law Firm announces that it is investigating potential securities fraud claims against CannaVest Corp. (OTCQB: CANV) resulting from allegations that the company may have issued materially misleading business information to the investing public.

Here is an excerpt from Rosen’s press release:

"On Apr. 3, 2014, CANV announced that its Form 10-Qs for the first three quarters of 2013 could no longer be relied upon. Specifically, CANV admitted that the purchase price and the allocation of the purchase price related to PhytoSPHERE Systems as disclosed on the 10-Qs were not in accordance with accounting principles generally accepted in the United States ("GAAP"). In addition, CANV concluded that sales and cost of sales for the quarter ended March 31, 2013 were incorrect. As a result of these adverse disclosures, the value of CANVS stock fell by 20% on April 3, 2014, damaging investors," the release said

Share Value Continues to fall

So far, CannaVest has not responded to these allegations. It must be noted that at this point, no lawsuit has been filed and the allegations at this point are unproven claims.

However, CannaVest’s share value continues to plummet, falling from $117 a share just a month ago to $24.21 a share at the close of Apr. 11, down 34 cents from the previous day’s close of $24.55.

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Hemp Inc. Announces Increased Sales as Share Value Continues to Fall

In other news,  Hemp Inc. (OTCPINK: HEMP) on Apr. 8 reported 2013 fourth quarter sales of $722,486, showing quarter-on-quarter increase for the year of 2013.

Sales by quarter for the year were $426,321 for the 1st quarter; $534,871 in sales for the 2nd quarter; and, $673,588 sales in for the 3rd quarter. Full-year sales for 2013 of $2,357,266 represent an increase of 26,359% over the previous year.

"2013 was the year we went from a developmental stage company to an operating company and we are very pleased with our stable, consistent growth through each quarter of our first operating year, as pointed out in the figures above," said Hemp’s CED Bruce Perlowin, in a written statement.

Unfortunately, Hemp’s press release did not reveal its overall expense or net income, if any.

Despite this latest positive spin by the company on its finances, Hemp’s share value has lost more than two-thirds of its value since Feb. 5, when HEMP closed at 30 cents a share. On Apr. 11, HEMP’s share price closed at 8 cents, down 1 cent from previous day’s close of 9 cents.

Deluge of Positive Press Releases

Ignoring the slide, the company continues to pepper the media with a deluge of positive press releases almost daily. While many of them sound interesting, many of them lack any real financial specifics.

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mCig Inc.’s 2.0 Device Earns Coveted CE Mark

Meanwhile, the Bellevue, Wash./Australian e-cigarette maker mCig, Inc.’s (OTCQB:MCIG) stock volume continued to soar Apr. 11 with 6,230,206 shares changing hands, higher than its three-month average of 5,832,105 shares. 

The continued surge in volume is being fueled in part by the company obtaining a CE Mark for its mCig 2.0 device.

This regulatory clearance officially allows mCig to sell and distribute its product in the European Union, thus positioning the company for joint venture distribution deals on the Continent as well as in other countries that accept the CE Mark.

This latest piece of good news comes on the heels of mCig unveiling its new wholly-owned subsidiary LiqCig, Inc., which is currently developing the world's first pre-packaged alcoholic electronic cigarette.

Calorie-Free Alcoholic Consumption

The LiqCig will provide consumers with an unprecedented calorie-free method for the consumption of alcohol creating a potentially disruptive force within the $1.3 Trillion Recreational Alcoholic Beverage Industry.

"For thousands of years alcohol has been primarily consumed via liquid ingestion. This form of ingestion leads to liver damage, heart disease, and weight gain," said mGig’s COO Mark Linkhorst. "Delivering alcohol into the bloodstream via vaporization is in our view a superior method for the consumption of alcohol. It also represents an exciting business opportunity given the size of this industry, and current logistical limitations," he added, in a written statement.

On Apr. 11, MCIG’s share price closed at 63 cents, down 5 cents from the share price of 68 cents the previous day.

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