Tranzbyte Corp. (OTCMKTS:ERBB) Still Falling

Last time we checked on Tranzbyte Corp. (OTCMKTS:ERBB), it was nosediving after its latest publicity stunt had gone stale. The company has been painting the charts red ever since that day, and has continued its headlong tumble in yesterday’s session, which brought its stock prices another 5% down.

On May 29, CNBC did a coverage on ZAZZZ, that started like so – “A marijuana vending, machine, yes, coming to a city near you… perhaps”. Perhaps, as in “that may or may not happen”. Three weeks later nothing has come to a “city near you”, and all ERBB has to show for its “hard work” is:

• an unconvincing presentation that was initially supposed to be a conference call (June 10)
• a missed unveiling date (June 12)
• a “quick update” announcement that “technology got in the way” of the company’s rollout (June 12)

An unimpressive list of achievements, to be sure. Perceptive and diligent investors with a critical outlook will notice how, despite the fact that ERBB has generated a lot of video content lately, the company has failed to provide investors with any viable information on what is really going on in it. Mr. Stephen Shearin was so kind as to make a “quick update” on the company, but all he said in it was that ERBB had “some regulatory things” and some “technology things” to take care of. He did no specify what the issues were, and just called them things.

Even more disturbing is the fact that whatever information and reassurance ERBB does provide in said video footage, seems to be either easy to misinterpret or downright false. Like the comment that stated that the company isn’t using toxic funding presently, hasn’t done so in ages and doesn’t plan on doing so. A look at ERBB‘s latest financial report confirms that it currently has a total of $1.2 million listed under “Debentures payable”. About a third of those debentures were issued on March 31 – it says so right there, on page 15 of said financial report. Both debentures were issued at an annual interest rate of at 10% and “will convert into the company’s common stock at 50% of the lowest closing bid price 18 months before the conversion date”. How is this not toxic funding?

In light of these blatant inconsistencies between proclamations and deeds, it should be obvious why investors are fast losing their faith in ERBB. As it is, in order to turn green again, “American Green” (name still hasn’t been officially changed to that) ERBB really needs to do something to make up for all the disappointments it has delivered to its investors so far. Sadly, with all the aforementioned “things” and  “technology getting in the way”, the chance that the company will be able to do so appears slim.

Another pot-stock company that was struggling with the market yesterday because of its lack of real achievements lately is Creative Edge Nutrition Inc. (OTCMKTS:FITX), who lost 4% of its market value in the same session.