legal pot sets off penny stock frenzy - outdoor electronic message boards

The Milken Institute likes to keep up with the latest new things, so it's not surprising that the April meeting in Los Angeles included a group that invested in marijuana.
Host, Mike "Zapolin Zappy", internship at Drexel Burnham Lambert. when junk-
Bond king Michael Milken ruled there and spent a few minutes talking about Zappy Inc.
He started a company to profit from marijuana.
Craig Ellins, another member of the group, showed an advertisement for a water ploughing pot --
Growth room developed by his new company, GrowBlox Sciences Inc.
Todd Denkin describes DigiPath Inc.
Bloomberg market will report in July that it plans to train people to work in a cannabis pharmacy and become a new barista for weedsAugust issue. The three men --
Half of the panel--
Share a pot of blood: they all work at GrowLife Inc. , a money-
In 2011, a company in woodlands, California, was supported by a more private person.
His name is David Weiner, who is involved in financing at least five pence
Stock companies like GrowLife since 2004.
The share price of all these stocks soared and then plummeted.
Weiner is thriving.
According to Elstrom, who lives in a luxury apartment building on Wilshire Avenue in Los Angeles, he says he has known 57-year-old Weiner for 22 years.
Real estate records show that he owns three iconic apartments developed by MGM Grand Hotel in Las Vegas, paying $3 at a time.
3 million house on Santa Monica beach.
"He buys and sells cars like other people sell coins," Eltro said . ".
"They are toys for him.
He is the kind of person with high risks and high returns.
When David lends money to a company, it's usually when they can't get it anywhere else.
With the growth of GrowLife, Weiner has joined investor fanatics about any cannabis-related product.
The sale and use of Pot is now approved for medical purposes in 22 states and Columbia, and entertainment sales in Colorado and Washington state are legal.
Entrepreneurs and investors see Green-both kinds.
"We're talking about a 50-to a 100-billion-
"The dollar industry is just beginning," Zapolin said at the meeting . ".
At least 130 listed companies now claim to be in the cannabis business, most of them
The stock is defined by SEC as less than $5 per share.
They often trade in risky and potentially lucrative places. the-counter market.
Brendan Kennedy, chief executive of private Holding, a company that invests in the cannabis industry, said he avoided listed companies.
"They are full of pranks and scammers," Kennedy said . ".
"Most of them will revert to zero.
Cannabis investors have no fear.
Some days, marijuana.
Related stocks account for 15% or more of all p.
According to the data of OTC market Group companies, stock trading
It operates a trading place once known as pink sheets.
Since September 2012, the market value of these stocks has soared from $0. 5 billion to more than $7 billion in May 30.
Weiner arrived early at the party.
His investment company W-
According to regulatory documents, the net fund I LP has acquired at least 0. 13 billion GrowLife shares since its listing in 2011, and millions of people flow to him through loans that are paid in stock rather than in cash. In March, W-
Net loan of $198,000 to Vape Holdings
A company next door to GrowLifeslung, open-
According to the company's documents, the company has an aviation office complex owned by a partnership that shares the address associated with Weiner.
Vape sells equipment that converts marijuana into non-smoking steam.
Training Company DigiPath has been located in the same office building until April, and government documents show that the National Cannabis News is an Internet company.
Headquartered in radio and television stations, it did not list the address there until June when the information disappeared from the website.
Weiner, through his lawyer, declined to say whether he owned the building or whether he was an investor in DigiPath.
Former Washington state senator Joe Tanner said he met with Weiner before becoming chairman of DigiPath on June.
He said he did not know if Weiner was an investor.
Weiner will not comment on anything in the article, said Sally hoffmester, a representative of the public relations company Sitrick & Co. in Los Angeles.
Anthony Glassman, Weiner's lawyer, said his client had never held a managerial position at growl life.
"In the course of the operation of GrowLife, he has never been at any time
Weiner has any activities that can take the company, "the glass man, partner at Beverly Hills, Bachmann, California, Browns, can distinguish & Jacobs.
In a letter dated June 3 in response to Bloomberg market questions, it was written.
When asked if Weiner had a stake in the other six types of marijuana --
Related Companies, including Vape, Zappy and GrowBlox, will not answer questions about his private finances, Glassman said. The U. S.
Last year, the Securities and Exchange Commission set up a special working group to combat so-called microcap fraud, which is interested in emerging listed companies.
S. Securities and Exchange Commission (SEC), without revealing any company name, warned investors to be cautious and not greedy.
Fraudsters often take advantage of the latest innovations, technologies, products, or growth industries. -
In this case, marijuana-
"Attract investors with a high return commitment," the SEC said in a statement . ".
The SEC has suspended the trading of eight marijuana-listed companies this year.
On April 10, the trading of GrowLife was suspended for two weeks.
The SEC said it took action "because people raised questions about the accuracy and adequacy of information on the market, as well as potential manipulation transactions.
"As the SEC took action, Sterling Scott, CEO of Sterling life, said he was confused about the suspension of the deal.
"We don't know what the SEC is worried about," Scott said . ".
"Clearly, there is no obligation for the SEC to provide any details.
No comments were made by the SEC.
According to the company news release, Scott resigned as CEO of GrowLife on May 22 for "personal reasons.
Public records show he sold 5.
Acquire 7 million shares of GrowLife for $2.
9 million on April 9, the day before the SEC suspended the transaction.
His wife offered to sell 7 on April 8.
8 million shares. Penny-
Stock companies market their shares through press releases and research reports that they sometimes spend money on.
Japanese traders pass them on message boards and Twitter to promote their favorites.
Steve DeAngelo, chairman of a cannabis investor club called ArcView Group, said investors are very confident about the proliferation of marijuana and they will grab anything that looks like good news as a reason to buy.
"Many small investors want to support the development of the industry and may be cheated," DeAngelo said . " He said he helped organize marijuana smoke.
Ins outside the White House at 1970
"There seems to be very little real activity going on.
In the 12 months ended March 17, GrowLife's share price soared 1,206 to 77 points.
Seven cents, boosted by a frenzy of marijuana and a steady stream of press releases praising the company.
On the day of the climax, for example, GrowLife touted a research partnership with its neighbor Vape.
GrowLife shares rose 18.
Nine cents, or 32%, raised its market valuation to $0. 629 billion that day, despite losing $21.
Sales in 2013 were $4 million. 9 million.
Glassman said Weiner has no role in writing or publishing the GrowLife press release.
The suspension of trading by the SEC killed the popularity of GrowLife.
Its share price closed at 50.
The day before, 2 cents slipped to 21 cents on the day the deal was resumed.
They closed 11 cents on June 17.
The SEC has never mentioned that Weiner or Scott has been suspended and has never been charged with misconduct or sanctions from the SEC.
According to his LinkedIn profile, Weiner received a master's degree in business administration from the University of California, Los Angeles, in 1981, which was deleted after Bloomberg market began reporting the story.
He joined Deloitte certified public accountants in 1988 as a consultant.
Eltro said he was a customer of Deloitte and met Weiner there.
Then Weiner went to K-For the music retailer-
International Telephone Company
According to his LinkedIn profile, another customer of Deloitte in 1993.
He became president there in 1996 and left in 1998, when he beganNet.
In the file, W-of Weiner-
Net Fund I is located at 12400 Ventura Avenue, Los Angeles.
This is a mailbox in a messy store called "Global Mail and business.
Jihoon hyeng, 33year-
The old Los Angeles trader, who used to be a passionate growling investor, recently said he was still a black hand in the stock, which he bought for less than 5 cents.
But he said that since reaching its peak in March 17, the value of his assets had fallen by $100,000 to $26,250 by May 28.
After the deal was suspended, the disabled hyeng asked his brother to drive him to the Forest Hill office in GrowLife.
He said he was surprised that they were so small.
"The office is like an H & R Block," Hyeng said . ".
"I think, 'perhaps the SEC is right, 'when the stock transaction is suspended '". Weiner and W-
Net do better.
In June 2011, according to a document submitted by the SEC, Weiner sold some of his shares, the largest holder of external shares in GrowLife, then known as Phototron Holdings Inc.
At least 10 times in 2013, W-
Net interest exchange
Convertible notes holding GrowLife shares at a substantial discount. W-
Net got 81 in total.
5 million shares are 0.
According to regulatory documents, 7 cents per person, 32 cents. 5 million at 2. 15 cents each.
For example, in the transaction on April 2, 2013, W-
Net changed the $119,000 loan to 17 million shares at 0.
7 cents per share.
Stocks closed at 5 on the same day. 9 cents.
Lawyer Glassman said Weiner sold most of his growing shares before the stock soared in 2014, and as of June 3 he had only "a fraction of the 0. 9 billion outstanding shares ".
If Weiner sold all the shares he bought in 2013 at the average price of roaring life that year ---5. 8 cents --
He could have made $5.
$5 million
3 million investment.
"You can make a lot of money in this industry," said John Lux, a securities lawyer in Bethesda, Maryland . ".
Glassman said Weiner received an average return on GrowLife. “W-
Net's investment in growing life in three years has produced a comparable return [
S & P 500 index
But the risk is much greater, "writes Glassman.
The S & P 500 had a total return of 56% from December.
2010 to December. 31, 2013.
Glassman said that Weiner's income in real estate exceeded the stock investment. “Mr.
Weiner's main source of income comes from his commercial real estate business, where he leases and manages office buildings in Southern California-
Not because of financing growth.
Stage Company, "wrote Glassman.
Weiner said on his LinkedIn page that he has accumulated $50 million in the Los Angeles real estate market.
Like Vape and many other penny stocks, GrowLife is listed through a reverse merger in which a private company buys a shell company listed ---
But stock trading still failed.
The private company bypassed the initial public offering (ipo) and inserted itself into the public offering (ipo), which took longer and brought more scrutiny from the SEC.
On Wall Street, the reputation for reverse mergers and acquisitions is bad.
S. Securities and Exchange Commission warned in an announcement on June 2011 that companies listed through reverse mergers are vulnerable to fraud.
Some are legitimate and successful, though.
Berkshire Hathaway Inc.
Founded by billionaire Warren Buffett, it came into being through reverse mergers.
According to regulatory documents, Weiner has invested in at least six companies created through reverse mergers and acquisitions.
He owns at least some of the shell companies in three of them.
The investment is through W-
Net or other company he controls, Woodman manages the company.
Former Weiner partner Elstrom said his idea was to run GrowLife, which runs seven stores in five states.
Ellins says Weiner is a rich man.
"He's just an integral part of the food chain," he said . "
"He is the rich man.
I am the one who founded the company.
"GrowLife started as a listed company in February 2010, when Weiner paid $210,000 through Woodman for most of the shares of catalyst Lighting Group Inc.
According to a filing with the SEC, the bankrupt listed company used to make utility poles for outdoor lighting. Next, W-
Net has joined a round of private investment in Phototron, a desktop greenhouse manufacturer that advertises in The Times Magazine.
Investors include the founder of a variety of companies, Las Mapstead.
The company operates adultfriendfinder.
Com and other sex sites before being acquired by Penthouse Media Group Inc.
Michael Rosen, former chief marketing officer, and Herbalife Limited
Two of Weiner's nephews, Adam libreos and Lee Mendelson, bought 14% of the optical tubes between them. (
Weiner and her husband's distant relatives work at Bloomberg News.
They were not prepared to participate in the story. )
Actress Christine scarafini, who starred in the movies Milf & Cookies and doubag, said she invested in her own money and got a "gift share" at Phototron ", teaching video for making how to load sphagnum moss, water and chemicals into a Phototron greenhouse
Sclafani said she learned about the company from Milken group members and high school friend Denkin.
"Everything he does is legal," she said . "
"They do press releases;
They do something to raise the inventory.
This is their job.
"Denkin did not call back.
In conclusion, in a private transaction that ended on February, Phototron sold 666,666 shares to Weiner, his nephew and other Phototron investors for $1 million.
According to regulatory documents, 2011.
Less than a month later, Phototron merged with Catalyst Lighting and investors exchanged their 666,666 shares of Phototron for 52.
A new listed company, which holds 2 million shares, is still known as Phototron.
The name was changed to GrowLife in 2012;
The stock code of the company is still PHOT.
The conversion rate means that Weiner and his colleagues
Investors got shares in GrowLife at 1. 9 cents apiece.
The stocks were initially not registered and required the group to hold them for more than a year before the sale.
In order to avoid waiting, they have to register shares, which means disclosing financial information and any risks associated with the company to SEC.
Investors registered part of the shares on June 8, 2011.
The SEC approved the sale of shares and the registration took effect on June 22.
On the same day, GrowLife began to treat itself as an up-and-
Supplier of cannabis supplies and equipment.
A June 22 press release describes plans to sell Phototron greenhouses through a network of citizen dealers, just as Herbalife sells protein shakes and supplements.
The company's trading volume took about a year.
On May 31, 2012, the volume exceeded 1 million shares, with an average price of 5.
5 cents a share that month.
If the original Phototron investors sold at that time, their money would double.
In November 2012, prices and numbers soared after voters in Colorado and Washington approved legitimate marijuana entertainment sales.
GrowLife released a series of press releases including November.
On the 13 th, the company announced that its greenhouse is now equipped with LED lights to increase crop production, part of the company's focus on selling "picks and shovels in the growing green boom.
On June 2013, GrowLife issued a press release saying that grassroots research and distribution companies touted the stock itself, not just the business.
Led by former Bear Stearns.
D. stock analyst.
Paul Cohen wrote a 55.
Page report refers to GrowLife's business model as "brilliant" and assigns it to a price target of 22 cents per share, up from 4 cents.
Stocks bought at that time were 5 cents.
In 50 pages of fine print, Cohen warned, "Don't base on any investment decisions, and don't rely on the information in this commercial.
GrowLife paid him to write the report, Cohen said.
He also said he owns a stake in GrowLife.
All of this is legal, he said, and it doesn't affect his view of the company.
"Growing up is a great company," he said . "
"That's what I said objectively.
Before financing GrowLife, Weiner worked and invested in a variety of industries.
He joined the Internet boom in 1996 when he became president of K-tel.
In April 1998, the music retailer known for being late
Night TV commercials for its super-hit episodes announced plans to sell online, with stocks falling from $7 to $68.
According to regulatory documents, Weiner sold 390,000 shares for $22 to $33, with a total profit of at least $8 million.
Three months after his last sale, he resigned.
Next, Weiner turned to fashion.
Paul Guez, a French fashion designer, became rich by setting up Sasson jeans.
In the 1980 s, Antik Denim was founded in 2004.
According to his LinkedIn profile, Weiner made the company public in the second year.
The SEC documents show that Antik merged with a shell company called Marine jet technology.
His stock is flat. lined at $2. 50.
When Antik and Marine agreed to merge before April 14, 2005, they began to rise to a maximum of $25. 52 that day.
They fell to a few pence from there and delisted from the Nasdaq stock market in 2008.
Guez says he's still an admirer of Weiner.
Guez's daughters Elizabeth and Kiera were early investors in GrowLife.
According to documents filed by the SEC, Paul Guez confirmed 3 million shares.
"He's a great guy," Guez said of Weiner . "
"He helped a lot of people.
In 2004, Weiner helped fund GVI Security Solutions.
In February, after he merged it into the mind tools company, the company went public.
According to a document from the SEC, the failed software manufacturer has been doing the shell for four years.
GVI attracted bold names.
Former New York City Police Chief Howard Safir joined the board in February 2004 as chairman;
Weiner joined the board that month.
Two months later, GVI's share price soared from nine cents to $10. 25 in a month.
Former CEO of Solomon Brothers, John guttfrend
July 2005 become GVI Board members.
At that time, Gutfreund was the managing director of investment bank C. E.
Tobin limited liability.
His company advises GVI on GVI 2004 sales.
$33 was raised in 6 million shares.
9 million according to a GVI document submitted in July 27, 2005.
Unterberg was paid 7%, or $2. 4 million.
Gutfreund declined to comment on the matter.
Safir said in a telephone interview that Weiner is one of the major investors, although he rarely deals with him.
Shares of GVI plunged after their first run
In December 2009, a private
The stock company bought the company for 39 cents a share. Other Weiner-
Shares of financing companies soared ahead of the beating, including biotech startup AtheroNova Inc . ).
Digital FX International Inc. , an Internet video company.
In Weiner's transactions, many of the same lawyers, accountants and executives appeared again and again.
Eltro is one of them. it is the K-of the "strategic plan-
Tel is a board member of GVI and serves as executive chairman of GrowLife.
Mr. Denkin was a board member of growing life, while Mr. zabolin was chief Internet strategist.
He said Eltro left the GrowLife board in 2013 and was disappointed that the company had decided to go beyond the photoelectric tube greenhouse and enter the cannabis market.
Increased supply.
"They call themselves cannabis companies?
All of these things are sold cheaper every day at the Garden shop, "Eltro said.
His new company, GrowBlox, was born in a reverse merger with signature exploration and production companies. in Houston.
Unlike Weiner who likes to stay in the background, eliner, Denkin and Zapolin serve their company by attending events such as the famous Milken conference.
Another panelist at the Cannabis Conference, Sue Rusche, is a group in Atlanta that tries to keep children out of contact with drugs, saying that when these people came to power, "They all say it's a great day for the industry.
Both Zapolin and Eltro have issued press releases promoting their attendance at the meeting, and have promoted their new big Hemp Company, maintaining the operation of the huge cannabis inventory promotion machine.