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Daily CryptoCann Report: Reuters exec joins blockchain start-up iComply, CV Sciences settles SEC suit

Last updated: 14:26 01 Jun 2018 EDT, First published: 14:07 01 Jun 2018 EDT

Marijuana
The cannabis company paid a US$150,000 settlement

Cryptocurrencies ended the week on a low note with all of the top five coins in the red.

Ethereum (ETH-USD) was the top decliner of the day, down nearly 2% to US$566.22.

Bitcoin Cash (BCH-USD) fell more than 1% to US$983.17 followed by EOS (EOS-USD) which was down nearly 1% to US$12.12.

Bitcoin (BTC-USD) was also down around 1% to US$7,436.43 while Ripple (XRP-USD) saw the smallest loss, down less than 1% to US$0.60.

iComply Investor Services, a start-up focused around blockchain regulatory compliance, welcomed a former Thomson Reuters executive to its management team. Greg Pinn will serve as the Canadian company’s head of strategy, according to a Coindesk report. Pinn is the company’s former head of risk intelligence and its financial crime screening platform. The fintech automates compliance procedures for ICOs and provides guidance regarding legal and accounting procedures.

ZhongAn, a Chinese insurance tech firm, is bringing blockchain technology to the health care industry, according to a South China Morning Post report. The company was founded by Chinese tech heavyweights in 2013, including Alibaba Group chairman Jack Ma, Tencent Holdings chairman Pony Ma Huateng and Ping An Insurance chairman Peter Ma Mingzhe. The company is working with insurance regulatory officials in Shanghai to discuss a blockchain reinsurance platform, or the insurance purchased by insurance companies. More than 100 Chinese hospitals have entered into a data-sharing agreement with the company.

READ: WeedMD reports revenues of C$1.14mln in the first quarter of 2018

The North American Marijuana Index, which tracks the leading cannabis stocks in the US and Canada, saw minimal gains.

CV Sciences Inc (OTCQB:CVSI) shares soared double-digits after the company announced that it settled a legal matter with the Securities and Exchange Commission, according to a company press release. The SEC filed a suit against CEO Michael Mona Jr., claiming that the 2013 purchase of Medical Marijuana Inc’s PhytoSphere Systems' assets was followed by accounting fraud. The regulator said that the assets were reported at the inflated amount of US$35mln, even though the company received a third-party valuation of only US$8mln.

The SEC wanted Mona to pay civil penalties, return a US$10,000 bonus and to prevent the CEO from serving as head of another public company. The company did not admit any wrongdoing but agreed to pay a penalty of US$150,000. Mona will pay a US$50,000 penalty and agrees not to serve as director of a publicly-held company for five years. Shares of the Nevada-based company were up more than 20% to US$1.86.

Cannabis companies are sponsoring about half of Colorado’s Adopt-a-Highway signs, according to a Leafly report. The state has about 160 of these signs and cannabis companies sponsor 80 of them. The Department of Transportation requires sponsors to pick up litter in the area at least four times a year and provides the supplies to do so then picks up the trash. Marijuana companies are banned from utilizing most forms of advertising, like television, radio or social media and so these signs can offer them a way to grab people’s attention.

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