CALGARY — Alberta and B.C. securities regulators are warning investors about the "aggressive promotion" of a Canadian junior gold mining firm in a mailout that claims its stock will soar during the COVID-19 related recession.
In a joint news release, the two provincial securities commissions say the mailing from an unnamed "stock analyst and geologist" to residents of Alberta and B.C. makes exaggerated claims about Crestview Exploration Inc., which is focused on exploring for gold in Nevada.
The commissions say the claims come in an envelope with no return address that says in red letters: "CORONAVIRUS AFFECTING MARKETS: READ NOW."
The letter claims that investors buying Crestview could see a short-term gain of about 500 per cent, while holding the stock for more than a year could result in gains of more than 2,400 per cent.
The company, meanwhile, says in a statement it did not send the mailouts, nor did it pay for or request the analyst's endorsement.
Crestview stock on the Canadian Securities Exchange rose from 77 cents at the close Friday to as high as $1.10 per share on Thursday morning. It reached a year-to-date high close of $2.32 in January.
The stock also trades on the Frankfurt Stock Exchange.
This report by The Canadian Press was first published April 9, 2020.
Companies in this story: (CSE:CRS)
The Canadian Press