How Long Can CGrowth Capital Inc (OTCMKTS:CGRA) Climb

[[tagnumber 0]][[tagnumber 1]]CGrowth Capital Inc (OTCMKTS:CGRA) didn’t start the year very well. The ticker was hovering between $0.0010 and $0.0015 in the first quarter and it saw virtually no investor attention, with daily dollar volumes rarely exceeding $1000.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]That was, however, until [[tagnumber 6]]CGRA [[tagnumber 7]]filed their annual report covering 2014. It showed that the company’s financial situation isn’t exactly rosy, but managed to attract some investor attention. Here are some of the numbers contained in its balance sheet.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 11]] [[tagnumber 12]]cash: $1,227[[tagnumber 13]] [[tagnumber 12]]current assets: $174 thousand[[tagnumber 13]] [[tagnumber 12]]current liabilities: $1.7 million[[tagnumber 13]] [[tagnumber 12]]yearly revenues: $486 thousand[[tagnumber 13]] [[tagnumber 12]]yearly net loss: $561 thousand[[tagnumber 13]] [[tagnumber 22]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]On the bright side, we see that [[tagnumber 6]]CGRA [[tagnumber 7]]is generating some decent revenues compared to other OTC entities. The cash on hand and current assets of the company, however, don’t look very well and, considering the fact that [[tagnumber 6]]CGRA [[tagnumber 7]]is operating at a net loss, financing its operations will be hard.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The most probable option for acquiring funds would be through the sale of equity, but [[tagnumber 6]]CGRA [[tagnumber 7]]has already gone through quite a lot of dilution. As we wrote in our previous article, a rather significant portion of the outstanding shares of the company (108 million shares) was in the form of debt conversion at a rate of just $0.0005 per share.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]That didn’t stop [[tagnumber 6]]CGRA [[tagnumber 7]]from spiking in the beginning of April, but things turned red quite fast. More recently, we see that the ticker has been making some gains after announcing a letter of intent with Wildfire Cannabis Company LLC.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This managed to boost the stock’s price significantly and after another 11.11% gain on Friday [[tagnumber 6]]CGRA [[tagnumber 7]]closed the session at $0.007 per share. A total of 15.4 million shares changed their owners and generated $103 thousand in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This week has started rather well and [[tagnumber 6]]CGRA[[tagnumber 7]] is 15.71% up in Today’s session. Will the ticker manage to reach the 1 cent per share mark is for time to tell. In any case, be sure to do your due diligence and weigh out the risks before putting any money on the line.[[tagnumber 2]]