The Securities and Exchange Commission (SEC) has ordered the stock regulator to investigate statements by JKN Global Media (JKN) executives regarding its new hemp investment promotion that drove up its share price this week.
The share price of JKN dropped 2% when the stock opened for trading on Wednesday after the SEC issued the order to the Stock Exchange of Thailand (SET) to conduct a preliminary investigation, before increasing 3.51% to close at 11.80 baht in trade worth 1.58 billion baht.
Earlier this week, the company published a post on Facebook that provided information about its planned hemp business and invited people to invest in its shares, then later removed the post.
JKN rented the air time on New18 digital TV channel for two months starting March 8 to sell its products and feature news and documentaries, though some criticised the broadcasting regulator for allowing it.
The National Broadcasting and Telecommunications Commission (NBTC) warned New18 channel to be cautious in selecting TV programme producers that adhere to media principles after JKN News Co rented the air time.
The move came after Jakkaphong Jakrajutatip, chief executive of JKN, revealed the company sees an opportunity in developing food supplements and beverages with hemp extract.
The NBTC on Wednesday summoned New18's operator DN Broadcast Co and JKN to discuss the move.
Following the talks, NBTC board member Perapong Manakit said DN Broadcast set aside 40% of New18 air time for JKN's rental.
The deal is in line with the NBTC's regulation of TV air time allotted to other producers, he said.
Mr Perapong said New18 has always provided programmes that are beneficial to the public and comply with the NBTC's regulations.
New18 TV has been instructed to be careful when selecting TV programme producers, and it must stick to media principles and ethics, he said.
"It should be concerned about the impact on the viewers," said Mr Perapong.
Ms Jakkaphong said the company has a contract with DN Broadcast for a news programme based on the NBTC's regulations for infotainment content.
JKN plans to air news items from JKN News, an India series, as well as documentaries.
New18 remains focused on providing news programming and broadcasts news for seven hours per day, she said.
Ms Jakkaphong said the company is studying the possibility of long-term business cooperation with New18.
Yuanta Securities research said JKN remains a promising long-term stock and recommends investors buy when prices decline.
The company has good prospects for future growth in the content production business and additional plans to penetrate the international market, including through new segments such as supplements, health and beauty products, and consumer goods, said the research.