News Release

Vancouver – The BC Securities Commission (BCSC) is warning investors that some articles about B.C. companies that appear to come from independent news sources may actually be misleading stock promotions connected to a coordinated effort by an international group.

The BCSC is concerned that these promotions might form part of a market manipulation or “pump-and-dump” scheme, in which investors are encouraged to buy a stock. This buying can contribute to an artificial price for the stock, allowing those involved with the scheme to sell their shares for a profit. When the buying interest wanes, the share price can drop sharply, leaving investors with significant losses.

The BCSC has learned that investors are being targeted through ads that appear on Google search results; those “sponsored results” drive investors to the promotional articles. Four advertising firms involved with the ads assert copyright over the content of the promotional articles.

According to the Google Ads Transparency Center, the following firms are listed as the “verified advertisers” of the campaigns:

• Advertising Services Worldwide Inc. in the British Virgin Islands
• Island Marketing Limited in the Cayman Islands
• Galerna Logistics Transport Corporation in Panama, and
• Oxbridge Media s.r.o. in Slovakia.

The campaigns lead readers to promotional articles about B.C. reporting issuers on the following websites:

The promotional articles and websites are presented in a news-style format, making it difficult for investors to distinguish promotional content from independent journalism. The websites are populated with other articles – which appear to be AI-generated – that give the websites a veneer of journalistic authenticity.

The BCSC has so far identified promotional articles about four B.C. reporting issuers that are listed on the Canadian Securities Exchange and/or the TSX-V, the OTC market and the Frankfurt Stock Exchange:

• Bighorn Metals Corp. (CSE:HRNY, FSE:8EZ1, WKN:A41E4K)
• Clara Technologies Corp. (CSE:CLTE, OTC:CLTEF, FSE:4BH, WKN: A3E4MS)
• Leviathan Metals Corp. (TSXV:LVX, OTC:LVXFF, FSE:0GP, WKN: A41F1U)
• Noveris Health Sciences Inc. (CSE:NVRS, OTC:MYCOF, FSE:0NF1, WKN:A42208)

In reviewing certain promotional articles about the four issuers published on these websites, the BCSC identified statements that appear misleading, unbalanced or inconsistent with publicly available disclosure. The BCSC is not alleging that any issuer mentioned on the websites or any of their executives  were involved in, authorized, or had knowledge of the promotional activities. The issuers have publicly stated that they did not authorize or participate in the publication of the articles.

Investors should be cautious of any investment opportunity promoted through online articles, particularly where the source of the information is unclear or the name of the news organization is obscure or unfamiliar. A professional appearance does not mean the content is independent, unbiased or trustworthy.

Watch for warning signs

Be cautious if an article:                                                                         

• Makes bold predictions about future share price increases.
• Focuses on potential rewards while minimizing or omitting risks.
• Compares a company to highly successful issuers without adequately explaining important differences.
• Highlights nearby mines, discoveries, or projects in a way that may overstate the significance of a company's own property.
• Provides a disproportionate emphasis on the company’s future potential while offering minimal information regarding its current business development.
• Uses urgent language suggesting investors must act quickly to avoid missing an opportunity.
• Appears to be independent journalism while failing to clearly and conspicuously disclose that the content is advertising or that compensation was paid for its publication.

Protect yourself

Before investing based on information found online:

• Read the company's public filings, including news releases, financial statements, and management's discussion and analysis – information on reporting issuers can be found on SEDAR+.
• Be skeptical of claims that a stock could generate extraordinary returns.
• Be cautious where an article uses a stock photo or an unverifiable reporter identity.
• Consider whether risks are discussed fairly and prominently.
• Check whether the article discloses who paid for it and whether the author has been compensated – be sure to examine text that is small, buried at the bottom, or otherwise hard to read.
• Visit the BCSC’s InvestRight.org to learn more about researching investments and protecting yourself from fraud.

If you have concerns about a stock promotion or believe you may have been targeted by an investment scam, contact the BCSC’s Contact Centre.

About the BC Securities Commission (bcsc.bc.ca)

The BC Securities Commission, an independent provincial government agency, strives to make the investment market benefit the public. We set rules, monitor compliance by industry, take action against misconduct, and provide guidance to investors and industry. As guardians of B.C.’s investment market, we’re committed to maintaining a market that is honest, fair, competitive and dynamic, enabling British Columbians to thrive.  

Media Contact:
Elise Palmer
604-899-6830

Public inquiries:
604-899-6854 or 1-800-373-6393 (toll free)
inquiries@bcsc.bc.ca

Learn how to protect yourself and become a more informed investor at www.investright.org