Aggressive Stock Promotion Exploits Fears of Coronavirus Recession

TORONTO – The Ontario Securities Commission (OSC) is warning the public about aggressive promotion of Crestview Exploration Inc. (Crestview), a junior gold mining company based in British Columbia and listed on the Canadian Securities Exchange and the Frankfurt Stock Exchange.

The OSC is aware of an unsolicited letter that has been mailed to residents of Ontario, British Columbia, Saskatchewan and Alberta over the last few weeks. The letter appears to make exaggerated claims about Crestview, predicting that its stock price “will soar as the recession hits” and invites recipients to download a research report from a website. This letter has been delivered via bulk mail by Canada Post in an envelope without a return address. The only notation on the envelope in large, red font reads “Coronavirus Affecting Markets: Read Now.”

In response to the letter, Crestview issued a statement on April 8, confirming that it was not responsible for its contents and that the letter contained “unfounded forward-looking statements.”

The OSC reminds investors to exercise caution if approached with aggressive stock promotions, which may make false claims of large profits and baseless stock price projections.

The OSC encourages anyone who is considering buying or selling an investment to first do research or talk to their registered investment advisor.

Investor warnings about Crestview have also been issued by the Alberta Securities Commission, British Columbia Securities Commission, Manitoba Securities Commission and the Financial and Consumer Affairs Authority of Saskatchewan.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair and efficient capital markets and confidence in the capital markets, and to contribute to the stability of the financial system and the reduction of systemic risk.  Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at http://www.osc.gov.on.ca.

 

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