There are several reasons the "Caveat Emptor" can be applied to a stock. SGMD's was certainly placed there after they submitted the application of the REG A+, to the SEC for approval. So, you could begin to suspect that since SGMD has now asked the SEC to place them under the microscope, that there were things they found that caused the Caveat Emptor's designation.
But, I have considered a possibility for the CE logo on SGMD, as being much more benign. Or even, as to whether the CE placement on a stock could actually be requested from the SEC. Specifically for the purpose of potentially "throttling" liquidity of shares during this time. For example: the REG A+ has a lower price than what the stock has been trading at currently. Proving that retail investors (even with a Caveat Emptor placed on this stock) have a strong desire to invest into what SGMD has already made public of their current and future endeavors. So, that it may actually be within the interest of any large "Institutional Investor" if the stock was currently stifled, during the procurement of these shares. And once the liquidity and sale of shares resolves back to normal, there could be an immediate surge up in volume and share price. With the CE dam being released allowing the flood of eager investors.
This is one of the reasons for the placement of the Caveat Emptor
Undisclosed Corporate Actions-
(The security or company is the subject of a corporate action, such as a reverse merger, stock split, or name change, without adequate current information being publicly available.)
So, the Caveat Emptor can be placed on a stock, if there is undisclosed information that could potentially change the sentiment of the investor.
This is very open-ended, and it could go both ways: positive or negative. I believe it to be for the betterment and it seems to be plausible in what could be going on with SGMD behind the scenes.
Obviously, I want this stock to do well.
Because I am long-biased and I have DIAMOND HANDS FOREVER BABY.
But there are some people on here, that are glad to point out where SGMD once was in price, and where we are now. Some of them may have actually lost money and are angry enough to stick around and post all of their grievances. But I believe for the most part, they are just being BEARS and they are shorting the stock. I HOPE THEY ALL LOSE THEIR SHORTS.
$$$ GO SGMD $$$ LONG AND STRONG!!! $$$
$$$ DIAMOND HANDS FOREVER BABY!!! $$$
