Executives at Sophisticated Cannabis Solutions on Tuesday described the recent temporary suspension of trading on the Colorado Springs' company's stock as an "massive inconvenience," but have been optimistic trading will resume.
Final week's quit-trade order by the U.S. Securities and Exchange Commission comes just 3 months after the commence-up landed up to $30 million in credit to support obtain properties to be leased to marijuana growers, which shot its stock up by 466 percent.
Sophisticated Cannabis Solutions shares, which last traded for $29.99, are up 823 percent for the year.
The SEC issued the order following questions more than "whether or not particular undisclosed affiliates and shareholders (of ACS stock) engaged in unlawful distribution of securities" on the More than-the-Counter Bulletin Board and OTC Link.The Cannabist
The order is scheduled to be lifted April 9, the SEC stated in a statement.
"It is a large situation, in particular for a business that was on a incredibly optimistic trajectory," CEO Robert Frichtel told The Denver Post in a telephone interview Tuesday. "In the purest enterprise sense, this is an enormous distraction."
ACS shares held by organization insiders are restricted from sale until August, Frichtel stated, so it really is unlikely the SEC inquiry &mdash about which the enterprise has received no detailed facts &mdash is seeking at them.
What could be in play are shares from ACS's reverse-merger last summer time with Promap Corporation in Centennial, a smaller oil-and-gas mapping business enterprise that acquired 94 % of ACS in exchange for 12.1 million shares of Promap prevalent stock, an 88 % ownership stake.
Frichtel, 49, became CEO of Promap and Roberto Lopesino, 35, was appointed its vice president, according to SEC filings. Promap executives Steven Tedesco and Robert Carrington Jr. resigned.
That acquisition changed ACS's organization strategy from mostly consulting to one of acquiring true estate to lease to marijuana growers and dispensary owners.
In January, investment firm Full Circle Capital Corp. announced it had reached agreement with ACS to provide it $7.5 million in senior secured convertible notes.
The six-year obligation allowed for an added $22.five million, largely backed by real estate.
David Migoya: 303-954-1506, [email protected] or twitter.com/davidmigoya
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