The offices of broker EverBlu Capital raided by AFP as part of an ASIC probe

Alleged ramping of a cannabis stock is behind Australian Federal Police raiding properties related to EverBlu Capital in Sydney and the Gold Coast.

An AFP spokesman has confirmed the EverBlu Capital raid in Sydney was in support of an inquiry by the Australian Securities and Investments Commission.

The Australian Federal Police have raided the Sydney CBD offices of EverBlu Capital as part of an investigation by the corporate regulator into the ramping of a cannabis stock.

That company, Creso Pharma, has since entered a trading halt and late Tuesday said it had not yet been able to verify whether it was the subject of the probe.

But Creso confirmed that “it has not been served with any notices from any regulatory body in connection with the matter’’.

The Australian Securities & Investments Commission declined to comment on Tuesday, but sources close to the investigation said the search warrant executed at EverBlu’s Aurora Place office was related to raids conducted on the Gold Coast.

An AFP spokesman confirmed the action in Sydney was in support of an ASIC probe.

Adam Blumenthal, executive chairman of EverBlu Capital, also chairs Creso Pharma.

The stockbroker was launched in 2016 by Mr Blumenthal, his ex-BBY executive father, Alvin Blumenthal, and his brother, Darrin Blumenthal, now the company’s acting managing director.

An EverBlu spokesman declined to comment about the AFP action on Tuesday but confirmed the company is “co-operating with the regulator about an external matter’’.

Neither Adam Blumenthal nor Darrin Blumenthal could be reached for comment.

EverBlu specialises in helping small companies on the brink of success go public through floats or backdoor listings.

It is well known among Sydney’s business community, including for holding a $7500-a-head dinner for now-Liberal MP Dave Sharma that featured appearances by Scott Morrison and Josh Frydenberg.

The company website notes it has worked on a number of capital raisings with companies including Creso Pharma, as well as Trek Metals, Elysium Resources and Roots Sustainable Agricultural Technologies.

Creso aims to develop and commercialise cannabis-related products.

Launched in 2015, the company floated on the ASX the following year and now has a market capitalisation of nearly $163m as it attempts to surf in on the growing medicinal and recreational uses for marijuana around the world. But just before 3.30pm Tuesday, trading in Creso shares was halted after they fell more than 9 per cent to 12.2 cents.

EverBlu continues to have close ties to Creso, with speculation this relationship is at the heart of ASIC’s probe.

According to the Creso website, Adam Blumenthal has 10 years of experience in investment banking and corporate finance.

“He has deep exposure to Australian and international markets, having provided capital raising and financing solutions to an extensive number of listed and unlisted companies. He has successfully brought to market several medical cannabis companies spanning Israel, Canada, Switzerland and Australia,’’ the EverBlu website says.

The stockbroker was briefly home to former ASIC deputy chair Daniel Crennan QC, who joined as a senior adviser last October after he left ASIC. He left three years before the expiry of his term after the Auditor-General found the regulator had incorrectly paid more than $70,000 in relocation fees when he moved from Melbourne to Sydney.

Mr Crennan left EverBlu in January after ASIC sought internal legal advice about his new position. ASIC had previously examined EverBlu’s key role in several mining sector floats between 2016 and 2018.

It examined the IPOs of gold miner Metalstech and resources explorer Pursuit Minerals but took no publicly disclosed actions against EverBlu.