Insider Selling Continues to Raise a Red Flag for Investors

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Although the cannabis industry is the fastest growing industry in the world, investors need to be selective and conduct thorough due diligence before investing.

When it comes to the cannabis industry, it all starts with the management team and it is important than ever to know who you are investing in. The emergence of the cannabis industry has led to an influx in the number of publicly traded companies focused on this incredible growth sector.

Although some of these companies may wow you with exciting investor presentations, attractive business model and remarkable high growth estimates; don’t believe everything you read!

To better increase transparency and help you focus on quality companies, we want to highlight three companies that recently filed insider trading documents with the Securities Exchange Commission (SEC).

Colorado-based Two Rivers Water & Farming Co (TURV) has seen an increase in the amount of stock sold by insiders during May. The seller, John McKowen owns more than 10% of common stock outstanding and made two transactions in May.

On May 11th, he sold 34,807 shares at $0.3667. On May 1st, McKowen sold 50,000 shares at $0.459. He owns more than 4 million shares of common stock. Investors should keep an eye on this because the last time McKowen sold was in February and we would not be surprised if he dumped another 100,000 shares.

Yesterday, Terra Tech Corp. (TRTC) filed a Form 4 with the SEC disclosing a sale by Peter Krueger, a director of the company. Peter sold 135,000 shares at $0.1881 and still owns 175,000 shares of common stock.

Cannabis Sativa (CBDS) filed a Form 4 that disclosed the issuance of 42,243 shares of common stock to CEO Mike Gravel. The issuance is related to the conversion of a $100,000 loan at $2.42 from Gravel (dated October 19, 2016).

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Source: 420 Intel – United States

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