Kenergy Scientific, Inc. (OTCMKTS:KNSC) Lifts Off Of Rock Bottom
Kenergy Scientific, Inc. (OTCMKTS:KNSC) is a company about which there has been very little interest for quite a lot of time now. The last press release that KNSC had made before yesterday was back in August, 2013 and it has been quiet since then.
As april fools’ day was knocking on our doors, however, KNSC came out with a press release, reviewing 2013 and announcing future plans. And yes, just like many other companies in the OTC markets recently, KNSC has decided to go for the green gold.
The management has intentions to relocate their home office to China in the next 90 days and announced they have decided to go in the business of offering advertising solutions via TV, radio, print and online mobile channels.
You may ask, what does this have to do with medical marijuana. Well, the deal is that they say they’ve been working on a media portal for the cannabis industry in the past 6 months. Why didn’t they inform the shareholders through a press release about this earlier, however? We seriously doubt it just skipped their mind to do this.
Also, it doesn’t appear that the company is in that good of a financial shape, considering the numbers contained in their quarterly report for the period ended September 30, 2013.
- cash: $120
- current assets: $75 thousand
- current liabilities: $3.7 million
- quarterly revenues: $202 thousand
- net income: $14 thousand
Don’t let the fact that the KNSC has net income fool you. It consists of a gain on valuation of derivative, so it’s not actual money. Furthermore, we are suspecting that the recent news have something to do with the incoming pack of rules in the OTC markets and KSNC just wants to get to 1 cent per share in order to continue being traded in the QB tier.
It is quite strange that a company that hasn’t said a word about its operations in nearly a year has sprung into action out of nowhere and decided that it will have something to do with the medical cannabis industry, don’t you think?
This is reason enough fo you to do your due diligence and weigh out the risks before you make an investment decision, because looking at today’s chart the latest movement might have been just a dead cat bounce.
Meanwhile, Red Giant Entertainment, Inc. (OTCMKTS:REDG) recorded a second session in the green with a 48% gain. Quasar Aerospace Industries, Inc. (OTCMKTS:QASP), another company that decided to branch ount into the MJ business, added a hefty 63% to its value yesterday.