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Globe says questions about CEN Biotech fall to SEC

2015-01-12 09:32 ET - In the News

The Globe and Mail reports in its Monday edition Health Canada wants anyone with concerns about CEN Biotech, which is touting plans to become the country's largest medical marijuana producer, to contact police or securities regulators. The Globe's Grant Robertson writes the unusual request comes as allegations of misrepresentation, stock manipulation and falsified documents swirl around the company and its top executive. CEN Biotech has a licence application before Health Canada. Said a department official, "We work closely with the RCMP." CEN has applied to build a massive marijuana growing facility in Lakeshore, Ont., near Windsor. The company is under a cloud of suspicion for allegedly issuing false news releases, suspect signatures on documents, and making misleading statements about partnerships and endorsements from Health Canada. The brewing scandal has become an embarrassment for the government, since the company has made it to the final stage of approvals with the department. CEN is owned by U.S.-based Creative Edge, so it falls under the jurisdiction of the U.S. Securities and Exchange Commission. The Globe says Health Canada appears ill-equipped to deal with the problem on its own.

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