Canadian cannabis company warns about shady stock promotion

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A small Canadian hemp cultivator is warning investors to be on the lookout for a “speculative” promotional email it says could be the cause of higher-than-average trading volume.

The company – Toronto-based Two Hands Corp. – said it was unaware of the campaign promoting its company until it was notified by OTC Markets.

Two Hands said it did not have editorial control over the email and it was “sent from an unreliable source.”

Offside promotional activities have been an issue in Canada’s volatile cannabis industry.

In December, the Canadian Securities Administrators – an umbrella group for provincial securities regulators – warned issuers against “problematic promotional activities” that could artificially increase share prices.

“We do see a higher incidence of problematic practices among venture issuers, and particularly among issuers involved in emerging industries like cannabis, fintech and battery metals,” the CSA said at the time.

Two Hands announced Wednesday it is weighing a listing on the Canadian Securities Exchange.

The company currently trades on over-the-counter markets as TWOH.