TL;DR Breakdown
- Nutritional Holdings created a cryptocurrency to raise money for its operations.
- Cannacrypt, the first cannabis cryptocurrency, is investigated.
Nutritional Holdings has distanced itself from the cryptocurrency that it invented. This online store created a decentralized currency that it tried to sell to its shareholders, but which eventually failed. The cryptocurrency, which is worth 1 cent on the JSE, is used to sell food composed of corn for prisons and schools.
For March, the company created a cryptocurrency that would raise money to expand its operations. Nutritional Holdings would have enough money for its new store, Ukesekela, which grew Cannabis in Lesotho, southern Africa. Following this announcement, the Jamaica Stock Exchange investigated to determine how trustworthy this company is.
Research on Nutritional Holdings
The JSE added pressure to the investigation when it learned that the company sent invitation letters to its shareholders. Nutritional Holding sent a buggy letter offering incredible returns for investing in its cryptocurrency, Cannacrypt. The letter promised that every investment over R20,000 could be converted to R2.4m in less than a decade.
Following this announcement to its shareholders, Nikhyle Dasarath, director of Nutritional Holdings, founded the company “Cannacrypt.” All the money raised was transferred to the company, controlled by Dasarath.
But the FSCA clarified that the company’s cryptocurrency is not illegal, but needed to be investigated soon. Andre Visser, director of regulation at JSE, spoke out against the incident saying that the company may have breached the listing rules. The JSE is trying to be discreet to conclude the matter soon.
Nutritional Holdings clarifications
On Tuesday, Nutritional Holdings said that Dasarath is no longer the Cannacrypt CEO. But Dasarath has come out to claim that it is difficult to be a director of the company due to the generated internal conflicts. It was concluded that Dasarath would be only one more financier of Cannacrypt, so as to ensure he isn’t the only one in control of managing the investors’ shares.
This measure applied for Dasarath is for the company’s good to avoid investigations and future restrictions. CannaCrypt can take a new administration tolerated by the JSE and thus can grow its cannabis cryptocurrency.
However, a deep search of the CIPC website indicates that Dasarath is still the director of the crypto company. The company ruled that these changes take time but that the director will soon leave.
One day after the company sent its non-traditional fundraising letter, the Exchange Sponsors advisor reported it. This company-appointed advisor to the corporate advisory firm reported to the JSE and then resigned. The firm did not disclose why the advisor resigned, but the JSE has claimed to know the reasons and chooses to keep it covered.
The investigations against the company and its Cannabis crypto would not be ending, according to the JSE. This research firm will not rest until it knows what the real goals of CannaCrypt are.
