- The SEC has suspended 10 cannabis-related companies since March.
- Following a suspension, companies are automatically relegated to the Grey Market.
- The process to escape the Grey Market is difficult and fundamentally flawed.
- The fear of an SEC suspension continues to haunt investors in the sector.
Since early March, there have been 10 suspensions by the SEC of companies in the cannabis sector. I do see clearly the need for government intervention to protect investors, but the current process is flawed, potentially resulting in a lack of due process for publicly-traded companies and their shareholders. In my view, this has created an overhang in the market, as investors endure "opening bell fear," waiting to see if there has been a suspension announced on the SEC website.