Bloomberg Law
Sept. 13, 2022, 8:43 PM

Cannabinoid Company Settles With SEC Over Penny Stock Scheme

David McAfee
David McAfee
Staff Correspondent

Profile Solutions Inc. settled Securities and Exchange Commission allegations that it operated a fraudulent penny stock scheme and lied about being preliminarily approved to grow cannabis in Africa, according to federal court filings in Florida.

The SEC accused Profile and its leadership of luring investors through material misrepresentations and omissions in connection with a supposed plan to grow and process medical cannabis and hemp. In reality, the defendants failed to disclose that it was actually illegal to grow cannabis in Eswatini, the commission said in a complaint filed in the US District Court for the Southern District of Florida.

The ...

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