GreenGro Technologies, Inc. (OTCMKTS:GRNH) Tries to Stop Its Slide

3GRNHchart.pngAfter fluctuating between $0.40 and $0.50 for nearly a month on March 11 the stock of GreenGro Technologies, Inc (OTCMKTS:GRNH) finally found the strength to start climbing upwards again. Well, positive sentiment certainly proved to be short-lived and after the stock hit $0.7 per share investors quickly started taking profits. As of yesterday’s close the company has almost returned to its previous price range after it lost close to 10% and dropped down to $0.51. 

GRNH has tried to reinvigorate investors and is issuing PR articles quite often but they don’t seem to be having any effect. On March 20 GRNH announced that they have secured $875 thousand in a non-brokered private placement. Despite the extremely positive news and the fact that the issued shares were restricted the stock of the company crashed by 13% on that day.
The fresh funds should certainly come in handy when the financial state of GRNH at the end of September, 2013 was:
  • $5 thousand cash
  • $42 thousand total current assets
  • $156 thousand total current liabilities
  • $7 thousand revenue
  • $221 thousand net loss
Admittedly the numbers are more than six months old but GRNH should file its annual report by the end of the month and then we will have a more current picture of their results. And the company has certainly been quite busy. 
Apart from their BP Gardens greenhouse project and the Vertical Hydrogarden store GRNH recently acquired a vaporizer technology that they intend to commercialize through the specially created subsidiary Greensticks, Inc. In early morning today they issued another press article announcing that the acquisition of Vertical Hydrogarden has been completed and that their second store should open soon after the asset purchase agreement with Anaheim-based Greenleaf Hydroponics becomes effective on April 1.

For now the hype around the marijuana industry has helped GRNH keep the majority of its gains but words can only get you so far. The company must show some results in the upcoming quarters or it may return to the price levels of 3 cents it had just three months ago. 

2PHOTchart1.pngMost of the older marijuana pennystocks are displaying the same chart patterns as GRNH. Medical Marijuana, Inc. (OTCMKTS:MJNA) has settled around 30 cents per share and has been hovering around them for the past two months. Yesterday it closed at $0.31. The stock of Growlife, Inc. (OTCBB:PHOT) was one of the few exceptions but after breaking through 75 cents last Monday it too started to correct. Yesterday the stock slashed another 13% of its value and closed at $0.50.

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