Blake Insomnia Therapeutics Inc (OTCMKTS:BKIT) Looking For Bagholders

We here at Insider Financial were the first to profile Blake Insomnia Therapeutics Inc (OTCMKTS:BKIT) last week. We said that there was big money behind the promo campaign and this bodes well for those that got in early. We are now issuing an immediate SELL as we believe the dump is about to start. The person behind BKIT is a notorious pump and dumper out of Chicago and judging by the volume over the last week, the chart is telling us that the top is near. Furthermore, with a market cap of $39 million and just $4,783 in cash, there's the risk of an SEC halt, just like the Chicago pump and dumpers last play, Preston Corp (OTCMKTS:PSNP). As you can see from the chart, what happened to PSNP investors is not pretty.The BKIT campaign kicked off last week when Sierra Publishing Inc paid the Wolf of Penny Stocks $45,000 for a one day advertising campaign. This generated over $1 million in volume for the Chicago pump and dump artist. Here's the Wolf's disclaimer:

Epicstockpicks.com has been compensated fourty-five thousand dollars cash via bank wire by a third party, Sierra Publishing Inc. for a one day Blake Insomnia Therapeutics Inc. advertising services contract. Epicstockpicks.com does not own any shares of BKIT. Epicstockpicks.com does not investigate the background of any third party. The third party may have shares and may liquidate it, which may negatively affect the stock price. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company.

According to theOTC.today:

Among the current newsletters that tout worthless penny stocks on a regular basis, it seems that nobody can generate more volume or initial price surge in its subject pump than The Wolf of Penny Stocks and its sister newsletters, Epic Stock Picks, Stock of the Week, and United Pennies of America, all of "whom" are owned by a non-existent limited liability company, MFG LLC.

We also found the BKIT landing page put up a by an "Eric Dickson" of Breakaway Stocks. We put up quotes because we doubt that is his real name. While we won't go into the promotional materials in great length here, what caught us as most alarming was what's written at the bottom.

The company has ALREADY raised over $40 million in equity funding to finance its growth and expansion.

This is a materially false statement! Here is what the latest press release said:

Blake Insomnia Therapeutics Inc is preparing to launch a fundraising drive to complete Phase II clinical testing of its patent-pending ZLX-1 compound for treating stress-related insomnia. The company has compiled a shortlist of appropriate investors to approach for funding. Since the ZLX-1 patent application covers multiple active ingredient combinations, Phase II clinical testing will determine which combination and dosage will deliver the most potent effect. Completing Phase II clinical testing will require approximately $5 million. After successful completion of Phase II, the company will seek an additional $10 million for Phase Phase III testing, the final step required to receive FDA approval. Phase III trials involve widespread testing of the compound for potential side effects.

Well then, why did "Eric Dickson" say that BKIT has already raised $40 million? It's because he was paid $700,000 to do so. From the disclaimer:

This website is a newsletter publication and is a paid promotional advertisement. The authors, publishers, researchers and advertisers involved in the dissemination of this content received financial compensation. We received a budget of seven hundred thousand dollars to manage this campaign.

Currently trading with a market cap of $39 million, don't walk away from BKIT, run! It won't end well for those buying. The dump is near and it's only a matter of time before the losses run into the tens of millions. BUYER BEWARE! DON'T GET LEFT HOLDING THE BAG ON BKIT! We will be updating our subscribers as soon as we know more. For the latest updates on BKIT, sign up below!Disclosure: We have no position in BKIT and have not been compensated for this article.