[[tagnumber 0]][[tagnumber 1]]After climbing up the charts in March we saw CannaVEST Corp (OTCMKTS:CANV) get severely corrected. The ticker managed to regain almost all of its previously acquired value in the beginning of last month, but was more hesitant in its second half, settling back a bit.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]][[tagnumber 6]]CANV[[tagnumber 7]] recorded four consecutive sessions in the red starting April 28 and sunk to $0.43 per share in the end of Tuesday’s session. Still, the market cap of the company isn’t that big compared to the large numbers contained in its balance sheet. Here is a quick example of [[tagnumber 6]]CANV’s[[tagnumber 7]] financials at the end of the fiscal 2015.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 13]] [[tagnumber 14]]cash: $518 thousand[[tagnumber 15]] [[tagnumber 14]]current assets: $16.6 million[[tagnumber 15]] [[tagnumber 14]]current liabilities: $2.45 million[[tagnumber 15]] [[tagnumber 14]]net sales: $11.53 million[[tagnumber 15]] [[tagnumber 14]]net loss: $12.23 million[[tagnumber 15]] [[tagnumber 24]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]][[tagnumber 6]]CANV[[tagnumber 7]] is one of the few potstocks that actually had some success in the sector and these numbers are a testament to that. Still, there is the matter of the notes that the company had to issue last year that convert into shares of common stock at hefty discounts to the current price of the stock. We discussed that in more detail in our previous article.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]After the slide that dominated the beginning of this week we finally saw [[tagnumber 6]]CANV[[tagnumber 7]] close in the green yesterday. The company issued a press release and we saw the ticker climb 10.47% in value and closed at $0.475. A total of 638 thousand shares switched hands and generated $304 thousand in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]There was some positive movement in today’s trading as well. [[tagnumber 6]]CANV[[tagnumber 7]] reached above the 50 cent per share mark earlier, but is now sitting at $0.49 a pop.[[tagnumber 2]]
Cannabis Science Inc. (OTCMKTS:CBIS) got back into the list of the OTC Markets’ most traded yesterday, as the news of the DEA’s approval of PTSD related marijuana tests hit the web.
There could be little doubt that this is a notable step forward for the marijuana industry. If clinical trials confirm that PTSD can be healed, or even alleviated, through the use of marijuana or some marijuana-related product, this could mean a great deal for anyone capitalizing on the growing cannabis market in the US.
However, it doesn’t seem like CBIS qualifies to fit in the category. No, a bit of due diligence suggests that this particular company is not really capitalizing on much of anything:
- cash – $5 thousand
- total current assets – $138 thousand
- total current liabilities – $5.1 million
- revenue for Q3 2015 – $4 thousand
- net loss for Q3 2015 – $3.9 MILLION
True, those numbers are somewhat outdated – but then again, CBIS doesn’t seem to be in a big hurry to remedy the situation. Which means that there is no way to know if things have gotten better – and, judging by the company’s idleness to date, there’s a fair to good chance that they have actually gotten worse.
For instance, there’s no way to know much harm the company’s tendency towards rampant dilution has done since CBIS last reported. Last year alone, the company issued 163 million shares of its common stock to “various individuals and companies” among which were its former CEO, the current CEO, the COO, and the CFO. Who knows how many more suspicious shares of common stock, or notes for the issuance thereof, have been printed since then?
To recap – recent developments have proved beneficial for the marijuana industry, but it has little to no bearing on CBIS, as the company seems to do very little business all, be it marijuana related or otherwise. Furthermore, we currently know very little of the various dangers that threaten CBIS investor value – and if the company’s past is any indication, said dangers could be many indeed. Investors should take all these facts into consideration, and beware.
On Tuesday Advanced Medical Isotope Corp. (OTCMKTS:ADMD) crashed hard wiping over 10% of their value but during yesterday’s trading things actually got even worse. The stock slashed an even bigger portion of its price sitting nearly 17% in the red at $0.0054 by the time of the closing bell. At least for now the company is still far from the price levels from the start of March when it was trading at around $0.0015 but if the downtrend continues it could soon find itself right back down there.
Doing even cursory due diligence on ADMD reveals a staggering amount of rather serious red flags. Let’s start with the fact that the OTCMarkets profile page of the company carries the OTC Pink Limited Information sign as a result of ADMD‘s annual report for 2015 still not being filed. This means that investors have to rely on the report covering the quarter ended September 30, 2015, if they want to get any financial information about the company. And opening said report is definitely not going to get anyone excited:
• $7396 cash
• $42,149 total current assets
• $8.8 million total current liabilities
• $12,054 revenues
• $2.5 million net loss
if the balance sheet simply wasn’t depressing enough let’s remind you that last year the company maxed out its authorized amount of common shares but that didn’t stop the conversions of debt – ADMD began using their Series A preferred shares, each of which can be converted into 1000 thousand common shares. Last year close to a million preferred A shares came into existence as a conversion of $5.93 million in debt while more recently 75,546 preferred A shares were issued in exchange for a promissory note with an outstanding balance of $1.1 million. While for now there is no room for the preferred shares to be converted that may change rather quickly – at any time prior to October 15, 2016, ADMD can perform a reverse split at a ratio between 1-for100 and 1-for-300.
ADMD have stated their plans to enter the veterinary oncology market, even forming a new subsidiary, IsoPet Solutions Corporations, while in the third or fourth quarter of the year they will try to submit a new de novo application with the FDA for their Y-90 RadioGel device. It is up to you to decide if this will be enough to offset the numerous red flags.
In early trading today the stock is trading 3.7% in the red at $0.0052.
Two consecutive sessions of red trading have brought Friendable Inc. (OTCMKTS:FDBL) right back down to $0.016 – and that’s no surprise at all.
The ticker did manage to attract a lot of attention a while back – and the volatility the interest it aroused in investors is still pushing and pulling it every which way. Enterprising investors have doubtless already taken advantage of that selfsame volatility in their efforts to make a quick profit. However, judging by the charts, a lot of traders have already lost interest in FDBL, which has led to both a drop in the dollar volume that the ticker registers on a daily basis and its chart position.
And, frankly, how could investors remain impressed with FDBL? Realistically speaking, all of the company’s achievements to date can be summed up in this excerpt from its latest financial report:
- Cash – $15 thousand
- Total current assets – $222 thousand
- Total current liabilities – $1.7 MILLION
- Annual revenues – $151 thousand
- Annual net loss – $3.2 MILLION
Furthermore, approximately $500 thousand of the company’s debts are in the form of convertible notes issued and outstanding. The majority of those notes can be transformed into shares of FDBL common stock at discounts of 50% of the lowest sale price 15 to 25 days before conversion.
And about all those boasts about the superb quality of the company’s product… Well, once you start reading the app’s reviews in the playstore, it becomes quite clear that it’s not really as impressive as FDBL makes it out to be.
All things considered, it is something of a wonder that the ticker hadn’t turned bright red at an earlier point in time.
On Tuesday Hemp Inc (OTCMKTS:HEMP) announced its first product from the company’s decortication facility in Spring Hope, North Carolina. According to the PR 25 thousand of SpillSuck, an environmentally friendly absorbent, are in the final stages of packaging, after which they will be ready for sale. The reaction to the press release was ecstatic – investors rushed towards the stock of the company and as a result of the intense buying HEMP surged by nearly 31% to a close at $0.052 per share.
Yesterday, however, instead of flying even higher up the chart the ticker suffered a drastic change in direction and sunk down to a close 6.15% in the red at $0.0488. The correction may seem surprising at first but taking a second look at the PR is enough to explain everything.
The decortication facility if still far from being operational and this means that the current amount of product is limited – HEMP expect to have another 100 thousand pounds in 2-3 weeks but after that they estimate getting only 50 thousand pounds ready for market. Furthermore, for now the company hasn’t actually announced any orders for the product stating only that currently they are in talks with retail suppliers.
In the past couple of months HEMP have not given any deadline estimates for the completion of the decortication plant. The last time they did so was back in January when they expected for the decortication line to become fully operational by the second quarter of the year.
The list of red flags surrounding HEMP goes on – the underwhelming financials from the annual report for 2015, the continued dilution of the common stock, and the millions upon millions of outstanding preferred shares that can still be converted into common shares. Before you put any money into HEMP‘s stock you should take the necessary time to do thorough due diligence. Don’t underestimate the risks and set appropriate time horizons for your trades.
Twelve sessions ago, Cardinal Resources Inc. (OTCMKTS:CDNL) announced that it has acquired some fresh funds. The ticker has registered some very impressive jumps and very few setbacks since then – but has this trend finally been overturned?
Although the method CDNL used to secure those $7.5 million worth of funding is debatable, there is no doubt that the sum itself will serve well to re-invigorate the company – that much we know for sure.
Unfortunately, this is where things we know for sure end, because CDNL still hasn’t bothered filing its annual report that it “delayed” more than a month ago. This being the case, we can’t really know what is going on with the company, and we can’t really estimate its progress based on the its older reports.
As it stands, said reports show a persistent streak of idle mediocrity:
- Cash and cash equivalents – $25 thousand
- Current Assets – 316 thousand
- Current Liabilities – $3.3 million
- Quarterly Sales – $60 thousand
- Quarterly Net loss – $851 thousand
However, we can’t really be sure that things haven’t gotten a lot worse. CDNL might have picked up staggering amounts of toxic debt since the last time it reported. The pullback we’re seeing right now may well be the result of such suspicious activities – and there’s no way to know for sure.
Note well that this is not to say that there is no way for enterprising investors to still make money out of CDNL even if it starts falling down. However, anyone trying to do so should only make the attempt with the knowledge that what they mean to do is nothing short of a blind gamble with horrible horrible risks involved. Investors are advised to keep that in mind at all times and act accordingly.
At the end of March General Cannabis Corp (OTCMKTS:CANN) announced record breaking revenues for the fourth quarter of 2015 and the year as a whole. Indeed, on year-over-year basis the quarterly revenues were up by 1205% while the annual revenues showed an increase of 634%. Seeing this investors showed massive support for the stock and in just a few weeks the ticker found itself reaching a high of $1.95 per share.
After hitting such price levels, though, CANN lost its momentum and started retracing its steps back down the chart. Yesterday the company crashed by over 17% and as a result fell below the $1 dollar mark for a close at $0.96. What could explain the drastic change in sentiment towards the stock?
CANN may have achieved significant revenue growth but unfortunately that is simply not enough to offset the rest of the numbers found on their balance sheet. Opening the annual report reveals the whole picture – as of December 31, 2015, CANN had:
• $59 thousand cash
• $246 thousand total current assets
• $3.7 million total current liabilities
• $1.76 million total revenues
• $8.78 million net loss
Although the financials raise enough red flags even on their own investors should also keep in mind that quite a few shares could have seen the light of day at extremely cheap prices. Back in December the company issued 619 options with an exercise price of $0.60 as well as warrants for the purchase of 50 thousand shares again at $0.60 per share. In March, as part of the amendment of the option agreement with Infinity Capital West, LLC., a warrant for the purchase of 100 thousand shares at $0.67 was issued by CANN. In the same 8-K form you can also see that at the start of April options for the purchase of 216,650 shares with an exercise price of $0.61 were issued under the company’s 2014 Equity Incentive Plan.
Last month CANN were able to negotiate an extension of substantially all of their indebtedness to dates beyond January 2017 so at least for now they won’t have to worry about that.
Trading pennystocks is inherently extremely risky and CANN is not an exception. Even if you believe in the potential of the company you should still use caution when putting any of your hard-earned money on the line.
[[tagnumber 0]][[tagnumber 1]]Marina Biotech, Inc. (OTCMKTS:MRNA) rarely seems some action and it has already been established that it has some liquidity issues. This year wasn’t really good for the company stock, as it was slowly sliding down the charts.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]][[tagnumber 6]]MRNA[[tagnumber 7]] certainly got to a level that was low for an OTC biotech company. The company stock’s value dropped below $10 million quite a while back, while the balance sheet didn’t look all that terrible. Here are some of the numbers that were contained in the company’s annual report.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 11]] [[tagnumber 12]]cash: $710 thousand[[tagnumber 13]] [[tagnumber 12]]current assets: $850 thousand[[tagnumber 13]] [[tagnumber 12]]current liabilities: $2.43 million[[tagnumber 13]] [[tagnumber 12]]annual revenues: $680 thousand[[tagnumber 13]] [[tagnumber 12]]loss from operations: $3.98 million[[tagnumber 13]] [[tagnumber 22]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Those numbers aren’t all that bad, but [[tagnumber 6]]MRNA[[tagnumber 7]] still gets really little attention. Yesterday the company made a couple of press releases that shined the spotlight on the ticker. Firstly, they announced that [[tagnumber 6]]MRNA[[tagnumber 7]] has terminated the negotiations for the sale of its nucleic acid therapeutic assets to Microlin Bio.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Then the company announced that it will acquire the intranasal ketamine program of the infamous Turing Pharmaceuticals AG, the privately held entity that Martin Shkreli founded in February 2015. The company was controversial with its 5,556% hike of the antiparasitic drug Daraprim before Shkreli got arrested by the FBI and charged with securities fraud and had to resign from the positions of CEO.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The news caused [[tagnumber 6]]MRNA[[tagnumber 7]] to surge 64.47% in value yesterday and we saw the ticker close at 25 cents per share. The volume was more than fifteen times the 30–day average and the 3.47 million shares that changed their owners generated $1.13 million in daily trade value.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]After a shaky start of today’s session we see that [[tagnumber 6]]MRNA[[tagnumber 7]] is 6% up as of the writing of this article, but you should still be sure to do your due diligence and weigh out the risks before putting any money on the line.[[tagnumber 2]]
[[tagnumber 0]][[tagnumber 1]]Implant Sciences Corporations (OTCMKTS:IMSC) has been climbing the charts since it changed its direction back in March. The ticker was sliding for the first half of the year, but as the price began moving in the other direction we also saw an increase in daily volumes.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The company stock has gained a market value that is more appropriate to the industry that it operates in and the contents of its balance sheet. [[tagnumber 6]]IMSC[[tagnumber 7]] recently filed its financial report for the fiscal 2015 and it contained the following numbers of prime interest.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 11]] [[tagnumber 12]]cash: $776 thousand[[tagnumber 13]] [[tagnumber 12]]current assets: $14.5 million[[tagnumber 13]] [[tagnumber 12]]current liabilities: $96 million[[tagnumber 13]] [[tagnumber 12]]revenues: $10.2 million[[tagnumber 13]] [[tagnumber 12]]net loss: $3.3 million[[tagnumber 13]] [[tagnumber 22]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Apart from the massive amount of liabilities [[tagnumber 6]]IMSC[[tagnumber 7]] is doing fairly well. Still, it did have to negotiate an extension on the maturity date of its debt which was March 31, 2016 and acquire some breathing ground.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]There are speculations that the company might enter into a pretty interesting partnership in the near future or even be acquired by a bigger entity in the sector, which might be one of the things behind the recent climb. Yesterday we saw [[tagnumber 6]]IMSC[[tagnumber 7]] gain another 21.31% in value and close at $0.74 per share, generating $549 thousand in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Today’s session, however, has started differently and we see some hesitation. Only time will tell if this is as high as [[tagnumber 6]]IMSC[[tagnumber 7]] can go and you should be certain to do your due diligence and weigh out the risks before putting any money on the line.[[tagnumber 2]]
Is Grow Condos Inc. (OTCMKTS:GRWC) finally going to turn red after all these sessions of intense climbing?
As we have mentioned on occasion before, the announcement of GRWC‘s latest acquisition did manage to afford the ticker quite a bit of upward momentum. However, it was more than clear that its jump wouldn’t last too long. Why?
Well, good news or not, we’re still talking about a company whose latest financial report looked like this:
- Cash and cash equivalents – $3 thousand
- Total Current Assets – $21
- Total Current Liabilities -$226 thousand
- Rental revenues – $23 thousand
- Net loss – $135 thousand
Meanwhile, the company’s market cap is as high as $64 MILLION. The inconsistency here should be more than obvious. What’s more, that’s not even the biggest red flag that the company’s filings have to offer.
A quick check reveals that there were around 45 million shares of GRWC common stock issued and outstanding in November 2015. The same month saw the company perform 1 for 20 reverse split that should have brought GRWC‘s number of shares outstanding down to approximately 2.2 million. Just two months later, GRWC once more boasted an outstanding share count as high as 28 million.
So, in the end what do we have on GRWC? Dubious cannabis company? Check. Hype-driven jump? Check. Mediocre financials? Check. Rampant dilution? Check.
As things currently stand, it’s something of a wonder that the ticker hadn’t turned bright red earlier.