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by Mike Caswell

The U.S. Securities and Exchange Commission has halted American Heritage International Inc., an Alberta-linked OTC Bulletin Board listing that is touting electronic cigarettes. The SEC cites potential manipulative activity surrounding the company. A halt is necessary for the protection of investors, according to the SEC.

The SEC's halt order says little else, but the regulator's concerns likely lie with a $1.3-million paid promotion of American Heritage that took place in March. (All figures are in U.S. dollars.) That month at least one tout was writing about the company as it went to a $1.62 high. This gave the stock, at least temporarily, a $161-million market capitalization.

Unfortunately for those who purchased on the hype, the stock quickly plunged from that high. Within days it dropped to under $1 and it was last at 2.52 cents prior to the halt. The company's subsequent financial results provided little to justify the massive valuation. For the quarter ended March 31, 2014, American International reported assets of just $340,608 and sales of just $38,561.

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