Penny Stock Frenzy Set Off By Legal Pot

13797194_sI thought, Maybe the SEC was right in suspending stock trading. Weiner and W-Net have done better. In June 2011, according to an SEC document in which he filed to sell some of his shares, Weiner was the biggest outside holder of shares in GrowLife, then called Phototron Holdings Inc. At least 10 times in 2013, W-Net exchanged interest-bearing convertible notes for GrowLife shares at deep discounts.

W-Net got a total of 81.5 million shares for 0.7 cent apiece, according to regulatory filings, and 32.5 million at 2.15 cents each. In an April 2, 2013 transaction, for example, W-Net swapped a $119,000 loan to GrowLife for 17 million shares at 0.7 cent per share. The stock closed that day at 5.9 cents.

Attorney Glassman says Weiner sold most of his GrowLife stake before 2014, when the stock soared, and that he owned just a tiny fraction of the 900 million shares outstanding as of June 3.

To read more, visit http://www.bloomberg.com/news/articles/2014-06-18/legal-pot-sets-off-penny-stock-frenzy

Posted in: Stocks

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