The Revival of SK3 Group, Inc. (OTCMKTS:SKTO)
SK3 Group, Inc (OTCMKTS:SKTO) ended the week with a strong finish. They closed in the green with a gain of more than 40% reaching $0.026. In addition the whopping 14 million shares changed hands during the session. This positive movement is a breath of fresh air for the company that has been gradually sliding down since mid-April.
SKTO joined the medical marijuana industry back in March and riding the hype and enthusiasm exhibited by investors managed to lift itself by 450% in a couple of subsequent session. Currently such heights of $0.06 seem somewhat distant as reality settled in and things started to cool down.
The general negative trend that all the companies in the industry experienced didn’t stop SKTO from following their business plan and they started clearing up all the red flags surrounding them. First and foremost they managed to remove the skull and crossbones mark given to the ticker by OTCmarkets by catching up with the financial reports for the past two years. Now we finaly have some up-to-date indicators about the company’s business activities. The latest one is for the period ending March 31 and it showed:
- no cash
- $5 million total current assets
- $700 thousand total current liabilities
- $5 million revenue
- $4.9 million net income
If you remember the previous financials of the company these impressive numbers may seem too good to be true. That is why some clarification is needed. The vast sum under current assets is listed as accounts receivable meaning the company has not actually received the money yet. Also noteworthy is the fact that iEquity Corp will become the controlling shareholder of the company when the 5 million series A preferred convertible stock for the acquisition of Medical Greens are issued to them.
An encouraging sign for SKTO is the absence of any paid promotions in the past months with the last alert email touting them dating back to March 11. With the recent agreements to provide licensing rights and marketing services for 11 medical marijuana collectives SKTO may be able to support a long turn positive trend. But the ticker is still prone to significant volatility and doing you own research is still a necessity.