May 10, 2018 Comments (0) Blog, Current Investigations

FusionPharm Inc. – Securities Investigation

FusionPharm
(Last Updated On: May 24, 2018)

Investor Alert – FusionPharm Inc.

Are you concerned about your investment in FusionPharm Inc.? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

FusionPharm Inc. is a Denver-based company that recycles shipping containers into greenhouses marketed to cannabis growers.

The company was the fifth pot-related company to have sales of its stock halted by the U.S. Securities and Exchange Commission in 2014, according to the Denver Post.

According to a press announcement in May 2014, the SEC temporarily suspended trading in the securities of FusionPharm Inc. due to a lack of current and accurate information about the company because of questions that have been raised about the accuracy and adequacy of publicly disseminated information concerning, among other things:

(1) the company’s assets;
(2) the company’s revenues;
(3) the company’s financial statements;
(4) the company’s business transactions; and
(5) the company’s current financial condition.

According to SEC filings, FusionPharm Inc. filed a Form D to raise capital from investors in 2012 in Denver, CO. The total offering amount was $1,000,000.

Investments such as these are typically sold by brokerage firms in exchange for a large up front commission. High fees can range from 7-10%, as well as additional “due diligence fees” that can range from 1-3%. In this case, sales commissions of 8% were paid on the investment, according to the Form D.

The problem with private placement investments such as FusionPharm Inc. is that they typically involve a high degree of risk. They are also often sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.

Investigating Potential Claims

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk private placements, like FusionPharm Inc. to investors.

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.

If you have concerns regarding your investment in FusionPharm Inc. and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visithttp://www.whitesecuritieslaw.com.

 

 

 

 

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