Replies to post #14727 on North American Cannabis Holdings Inc (USMJ)

[poster44ny]

i would think so. Those shares would be restricted. I guess some speculation there on my part.

[poster44ny]

What Are Restricted and Control Securities?
Restricted securities are securities acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer. Investors typically receive restricted securities through private placement offerings, Regulation D offerings, employee stock benefit plans, as compensation for professional services, or in exchange for providing "seed money" or start-up capital to the company. Rule 144(a)(3) identifies what sales produce restricted securities.

http://www.sec.gov/investor/pubs/rule144.htm

It makes sense they would have to be restricted since the PP inv. had insider info otherwise they would not shell out $27.5k in one shot.

[poster44ny]

Seems so about the PP shares:

Regulation D
To privately place its stock, a company must qualify for an exemption to the SEC registration requirement. Criteria for those exemptions are spelled out in an SEC rule that goes by the vaguely pharmaceutical-sounding name of Regulation D. For example, the exemption described in Section 506 of the regulation allows a company to raise an unlimited amount of money through private placement if it meets several criteria. First, it can't advertise the stock or send out a general solicitation for investors. Second, stock can be sold only to investors -- institutions or individuals -- whose experience, wealth or position makes them sophisticated enough to understand the risks. There are federal guidelines for determining who is "accredited" or "sophisticated" and who is not. Third, companies must provide financial information to the investors and be available to answer their questions. Finally, the investors usually can't resell their stock for a year.

http://budgeting.thenest.com/meaning-private-placement-shares-23243.html