Phone solicitors using high-pressure sales tactics, including daily phone calls, have targeted several vulnerable seniors in B.C. in an attempt to get them to buy shares in Vancouver-based CannaOne Technologies Inc. (CSE:CNNA), according to the British Columbia Securities Commission (BCSC).
The phone tout, whose number appears on caller identification as coming from the New York area code 646, instructs people to buy a specified number of shares at a certain price, and tells them not to sell the shares until they receive a follow-up phone call.
The BCSC is working with CannaOne to determine who is responsible for the telephone calls. The calls, which appear to have been made to people in other parts of Canada as well, took place between January and March.
Buying shares in a company on the basis of an uninvited phone call of unknown origin is unwise because it is likely that whoever is making the calls owns shares in the company and is making the calls as part of an effort to pump up the company’s share price. The caller then may unload their own shares at the inflated share price, causing the value of the company’s shares to fall.
The BCSC urges anyone who has received phone calls encouraging them to buy shares of CannaOne, or any other company, to contact the commission at 604-899-6854, or 1-800-373-6393.
The BCSC first learned of the calls due to a complaint made to that line.
It encourages anyone who is considering buying or selling an investment to do research, or talk to a registered investment advisor to ensure it is an appropriate decision.
CannaOne’s shares started trading on the Canadian Securities Exchange in November, and steadily rose from $0.70 to $1.84 on February 28. Shares then went on a two-week nose-dive to $0.50.
The company’s shares have since rebounded, and they closed at $1.20 on May 27, down $0.08, or 6.25% on the day.
No one from CannaOne was immediately available to comment on who could be making the calls.
CannaOne sells online tools to help cannabis entrepreneurs, particularly those who sell directly to consumers. One product, for example, helps dispensary owners develop themed websites that also enable the dispensary to schedule product pick-ups, and to deliver products to medical patients and recreational customers.
In B.C., only the B.C. government’s online BC Cannabis Stores is legally allowed to offer e-commerce services.
