Stock promotion letter in Saskatchewan makes exaggerated claims: FCAA

Saskatchewan’s Financial and Consumer Affairs Authority (FCAA) is warning potential investors to exercise extreme caution about aggressive promotion of a B.C. gold mining company.

A letter recently circulated by mail across Western Canada makes exaggerated claims about Crestview Exploration Inc., predicting that its stock price “will soar as the recession hits,” according to FCAA.

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Mailings are sent from a “stock analyst and geologist” and come in an envelope that says in bold red letters, “CORONAVIRUS AFFECTING MARKETS: READ NOW.”

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“The short-term upside potential for investors buying shares of Crestview Exploration today is around 500% while long-term shareholders (12+ months) could see gains exceeding 2,400%,” the letter says.

Crestview announced last week it was made aware by regulators that buy recommendations and letters including unsolicited and unfounded forward-looking statements are being circulated.

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The company said the information in the letter is not emanating directly or indirectly from Crestview and should not be construed as such.

“For better clarity and to the best of the company’s knowledge, no officers and or directors were involved in disseminating this letter,” read a statement from Crestview CEO Glen Watson on April 8.

“Crestview has not paid any compensation, nor has it requested for this analyst to endorse the company nor its stock.”

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The mailings have also been sent to people in B.C., Alberta and Manitoba, according to a press release.

FCAA is reminding investors to exercise caution when considering aggressive promotions as these may make false claims of large profits and baseless stock price projections.

Anyone who is considering buying or selling an investment is encouraged by FCAA to do research or talk to their registered investment advisor to ensure it is an appropriate decision.

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