{"id":4721,"date":"2014-06-06T09:14:30","date_gmt":"2014-06-06T09:14:30","guid":{"rendered":"\/?p=4721"},"modified":"2014-06-06T09:43:26","modified_gmt":"2014-06-06T09:43:26","slug":"growblox-sciences-inc-otcmktsgblx-continues-its-crash-despite-media-attention","status":"publish","type":"post","link":"\/articles\/growblox-sciences-inc-otcmktsgblx-continues-its-crash-despite-media-attention\/","title":{"rendered":"Growblox Sciences Inc. (OTCMKTS:GBLX) Continues Its Crash Despite Media Attention"},"content":{"rendered":"\n

Growblox Sciences Inc. (OTCMKTS:GBLX<\/a>) crashed another 14.62% yesterday, despite the publishing of yet another optimistic piece of PR, that reassured investors that the company is on the verge of a breakout.<\/p>\n

It is well known that in the present volatile state of the marijuana stock market, PR and media attention can easily fling a ticker sky-high for a short time, but unless the news is based on actual reslt, the climb is likely to be short lived. Moreover, once a ticker starts falling, it usually takes time before this tactic can be used again effectively. Releases issued at a time when investors are recoiling from the stock have been known to have little promotional value – but this didn’t stop GBLX<\/a> <\/strong>from trying. <\/p>\n

True to the spirit of the marijuana hype, once things started getting stale, GBLX<\/a> <\/strong>made an attempt to compensate for its shortcomings through PR. The “Shareholder Update<\/em>” the company issued was as optimistic, vague and uninformative as can be expected by a hollow marijuana press release, profusely wordy and cluttered with clichés such as “cutting edge technologies<\/em>” and “perfected our technology<\/em>”.<\/p>\n

Still, the press release did give investors something to grasp at. The company’s announcement GBLX<\/a><\/strong> that it has “raised $5 million from accredited and institutional investors through common stock and warrants” is certainly noteworthy. At first glance this appears to be excellent news – the company got its hands on some cash, which is always good. However, investors are advised to note that 3 million shares of common stock were issued to Lazarus Management Company LLC as compensation. That’s a dilution of approximately 25% on this occasion alone!<\/p>\n

Another thing that investors should probably consider are the warrants that the company has issued. In light of GBLX<\/a>‘s <\/strong>fondness of toxic funding, news of the issuance of said warrants sticks out like a sore thumb.<\/p>\n

GBLX<\/a>‘s <\/strong>tendency towards toxic funding is truly remarkable. On March 21, GBLX<\/a> <\/strong>sold 200 thousand investment units to an unknown investor at a price of half a dollar per unit. Each one of those units contains one share of the company’s common stock and two warrants, exercisable at a rate that the company has failed to disclose. But the story doesn’t end there. $114 thousand worth of debt have been converted into 438 thousand shares merely days after said issuance, followed by the conversion of another $459 thousand worth of notes into 1.7 million shares. The two later conversions were both done at rates of about $0.25 per share, which roughly puts the discount rates on all the conversions between 60% and 90%.<\/p>\n

No amount of publicity can compensate for funding this toxic. Add the fact that GBLX<\/a> <\/strong>was recently targeted by a paid pump campaign and it becomes obvious why the ticker is currently falling as hard as it is.<\/p>\n

Another marijuana company that fell yesterday is Terra Tech Corp. (OTCMKTS:TRTC<\/a>), who lost 8.7% of its market cap in that session.<\/p>\n","protected":false},"excerpt":{"rendered":"

Growblox Sciences Inc. (OTCMKTS:GBLX) crashed another 14.62% yesterday, despite the publishing of yet another optimistic piece of PR, that reassured investors that the company is on the verge of a breakout. It is well...<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1407,259],"class_list":["post-4721","post","type-post","status-publish","format-standard","hentry","category-news","tag-gblx","tag-trtc"],"_links":{"self":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/4721","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/comments?post=4721"}],"version-history":[{"count":0,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/4721\/revisions"}],"wp:attachment":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/media?parent=4721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/categories?post=4721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/tags?post=4721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}