MJ Biz report
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.
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