9,500% gain in pot investment stock Nabis Holdings at risk as IIROC cancels trades

Micro-cap went from a dime to almost a dollar in a week before the action stopped

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The Nabis Holdings Inc. micro-cap went from a penny to almost a dollar in the week before the stock was discontinued. Now a Canadian regulator says it will roll back all of those transactions.

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The Investment Industry Regulatory Organization of Canada said all trades between Jan. 27 and Feb. 2 will be canceled. Short selling was also found to be ineligible.

“IIROC made this designation in the interest of maintaining a fair and orderly market based on defaults against the number of shares outstanding,” according to a separate statement on the short sale.

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IIROC and Nabis did not immediately respond to requests for comment. Nabis is a Canadian investment firm focused on the cannabis industry, according to its website.

Nabis completed a recapitalization last month under Canadian bankruptcy law and issued 3.7 million new shares as well as new unsecured notes, according to a statement.

The Canadian Securities Exchange said in a bulletin that the newly issued common shares of Nabis released for trading on January 27 “were not eligible for trading and settlement of trades is not possible.” Nabis’s new unsecured shares and notes will remain on hold until their eligibility is confirmed, and its new common shares may not be tradable until or around March 1, the CSE added.

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