There are now at least 130 public companies that claim to be in the pot business, and most of them are so-called penny stocks, defined by the SEC as stocks trading for less than $5 a share. They often trade in the risky and potentially lucrative over-the-counter market. Brendan Kennedy, chief executive officer of Privateer Holdings, a firm that invests in the marijuana industry, says he shuns the public companies. “They’re full of shenanigans and charlatans,” Kennedy says. “Most of them will revert to zero.”
Read more in Bloomberg.