United Cannabis Corp. Filed Chapter 11 Bankruptcy Protection

United Cannabis Corp. (formerly MySkin Inc.)  Investment Losses

Have you suffered losses investing in United Cannabis Corp. (Myskin Inc.)? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

United Cannabis Corp. reportedly filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Colorado on April 20, 2020. The company owes nearly $5 million to its 20 largest creditors, the report said.

The company reportedly owns intellectual properties related to growth, production, manufacture, marketing, management, utilization, and distribution of medical and recreational marijuana, and marijuana infused products in the United States and the Cayman Islands and focuses on developing therapeutics. The company was formerly known as MySkin, Inc. and changed its name to United Cannabis Corporation in May 2014 after it reportedly filed a form D to raise capital from investors for the offering MySkin, Inc.

Reg D private placement investments are often riskier and more complicated than traditional investments, and are only suitable for high net worth, sophisticated investors. Despite the risks of investing in private placements, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.

Investments such as these are typically sold by brokerage firms in exchange for a large up front commission. High fees can range from 7-10%, as well as additional “due diligence fees” that can range from 1-3%.

Recovery of Investment Losses

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for unsuitably recommending high-risk private placements to investors.

Despite the risks of investing in private placements, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.

If you have concerns regarding your investment in United Cannabis Corp. (MySkin Inc.)  and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, please visit http://whitesecuritieslaw.com.