Greenhouse Solutions, Inc. (OTCMKTS:GRSU) Wipes Its Gains
At the end of last week the stock of Greenhouse Solutions, Inc. (OTCMKTS:GRSU) soared up the chart by more than 32% and closed at $0.144 per share. Investors shifted nearly 2.5 million of the company’s shares during the trading day, volume that is seven times higher than the monthly average. In our previous article, however, we warned you that there was absolutely nothing supporting the stock’s surge.
We also warned you that GRSU is simply riddled with red flags. The company hasn’t filed a single press release, outside of its SEC filings, in months. In fact, the last PR that GRSU issued came all the way back in November 2015 when the company provided an update on its operations announcing their intentions to jointly produce a hemp-infused mental clarity drink with KOIOS Inc. According to GRSU‘s official website the drink is expected to become available at some point in 2016 but no specific dates have been mentioned.
A successful launch of any kind of product could finally turn GRSU into a revenue generating entity but for now the company remains in an abysmal financial state. By the end of the month GRSU should submit their annual report for the fiscal year ended March 31, 2016, but until that happens we are left to rely on the quarterly report for the three months ended December 31, 2015. Back then GRSU had:
$4,971 cash
$34 thousand total current assets
$101 thousand total current liabilities
ZERO revenues
$2.4 million net loss
In order to raise the necessary funds to keep their operations going GRSU have been regularly selling shares and it seems highly unlikely that this will change any time soon.
With the company being surrounded by such serious red flags it shouldn’t be that surprising that it took their stock only two sessions to wipe the entirety of its gains. Yesterday the ticker suffered a painful crash and as a result it slashed 28.5% of its value sinking all the way down to a close at 10 cents per share. It remains to be seen if GRSU can avoid sinking even lower down the chart.
