Warning - Aggressive stock promotion exploits fears of coronavirus recession

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Autorité des marchés financiers

Apr 22, 2020, 08:52 ET

MONTRÉAL, April 21, 2020 /CNW Telbec/ - The Autorité des marchés financiers (AMF) is urging the public to exercise great caution with regard to the promotion of the activities of Crestview Exploration Inc., a B.C. gold mining company. 

A mailing sent from a "stock analyst and geologist" to residents of B.C., Alberta, Manitoba and Saskatchewan makes exaggerated claims about Crestview Exploration, predicting that its stock price "will soar as the recession hits." The letter comes in an envelope, without a return address, that says in bold red letters, "CORONAVIRUS AFFECTING MARKETS: READ NOW."

"The short-term upside potential for investors buying shares of Crestview Exploration today is around 500% while long-term shareholders (12+ months) could see gains exceeding 2,400%," the letter says.

Crestview Exploration, listed on the Canadian Securities Exchange and the Frankfurt Stock Exchange, issued a statement on April 8 stating that it was not responsible for the promotion, and said the letter contained "unfounded forward-looking statements." The company strongly urged investors and potential investors to verify any statements, and the source of such statements, contained in buy recommendations.

Although no cases have been brought to its attention to date, the AMF reminds investors to exercise caution if they receive this letter containing false promises of large profits and baseless projections. 

For more information about fraud, visit the AMF website at https://lautorite.qc.ca/en/general-public/fraud-prevention/.

The Autorité des marchés financiers is the regulatory and oversight body for Québec's financial sector.

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SOURCE Autorité des marchés financiers

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