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High Times, Elegance, Emerald Health Pharmaceuticals among 8 cannabis companies participating in promotion scheme, says SEC

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On September 30, a Securities and Exchange Commission (SEC) announced that it had charged eight stocks of cannabis, in a stock promotion plan that included Emerald Health Pharmaceutical CompanyAnd the Elegance Brands Company (Currently Sway Energy Corporation.), And the High Times Holding HTHCAnd the mentioned Debra Borchardt for Green Market Report.

The Securities and Exchange Commission says investors bought $80 million in securities after the promotions. Borchardt wrote that individuals received payments based on the number of securities sold.

Undisclosed compensation

The Securities and Exchange Commission announced that the alleged repeated violator of the Securities Act Jonathan William Mikkola Promoted securities of four issuers Elegance Brands Companyand Emerald Health Pharmaceuticals Inc. and Hightimes Holding Corp. And the Cloudastructure Inc, “Without disclosing that he received compensation for promotions.”

Mikula allegedly promoted the securities via a newsletter issued by the company Palm Beach Projectwhile he was being compensated secretly.

In addition to Mykola, the SEC complaint also accused Christian Fernandez And the Amit Raj Berrywho allegedly acted as intermediaries.

“Perry in particular has served as a go-between for cannabis companies Emerald Health and HighTimes. Borchardt reports that no charges have been brought against the High Times.

Beri is also listed as CEO and CFO of Elegance Brands, which has been approved by the Securities and Exchange Commission (SEC) for a Reg A bid.

Perry made changes to the offer but is not preparing a new offer statement with the Securities and Exchange Commission, and these securities are now considered unregistered.

At Mykola’s invitation, and in order to “facilitate” the promotion, Elegance has agreed to engage Individual 1, one of Mykola’s partners, to pay 3% of the investor funds raised through the Promotion and to provide him with 8.9 million Elegance shares, Which amounted to 10% of the company’s outstanding balance,” according to the complaint.

According to the Securities and Exchange Commission, Elegance has agreed to pay a fine of $776,932. Perry agreed to pay $96,0314.96 in damages, $38979.24 in pre-judgment interest, $207,183 in fine, entry to a 10-year bar and a “behaviour-based injunction preventing him from engaging in certain promotional activities.”

Stock promotion campaign

Meanwhile, Emerald Health allegedly made $30 million in a stock promotion campaign. CEO of Emerald Health James Demissa Accused of omission in filings on promotion and related payments.

Emerald Health pointed out that Palm Beach Project He recommended the company as an “attractive investment opportunity” without disclosing that this was a paid recommendation.

Emerald Health agreed to pay a fine of $517,955; DeMesa agreed to pay a $103,591 fine and agreed to a five-year ban from serving as an officer and manager, and Dillon agreed to a permanent ban from serving as an officer and manager.

High Times Holding

High Times was upgraded by Palm Beach Venture between April 2020 and March 2021.

“Hightimes eventually entered into an agreement to pay Entity 1, an individual-controlled Canadian Entity 2, 5% of the funds raised through the Palm Beach Promotion. (…) The purpose of using a Canadian Entity and an Offshore Account was to disguise that the payments from Hightimes will go to Mikula,” according to the complaint.

The High Times paid $150,000 for the promotion, but the complaint did not say how many securities were sold through the promotion. However, if the High Times agreed to pay 5% of the securities sold and then paid the individual $150,000, then it can be concluded that at least $3 million was raised through this promotion. The High Times did not respond to a request for comment,” Borchardt wrote.

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