Alternaturals, Inc (OTCMKTS:ANAS) Loses a Tenth
Alternaturals, Inc (OTCMKTS:ANAS) has been on a wild ride over the last few sessions. Thursday and Friday were extremely positive – some intense buying volume resulted in a run that picked the ticker from under $0.003 and flung it as high as $0.0075.
Yesterday, ANAS slipped by around 10% and closed the session at $0.0067, but the majority of people around the message boards seem convinced that this was nothing more than a healthy consolidation. Apparently, they reckon that the stock is primed and ready for another impressive run. The dollar volume, which stood at over $500 thousand, could also suggest that plenty of investors are ready to trust the company and its management team.
In the interest of fairness, we should note that if the press releases are to be believed, ANAS is moving along with its business plan at a rather rapid rate. Since the name and ticker symbol were changed, the company has made two announcements and Emmanuel Gyamfi, ANAS‘ CEO, has also written a couple of letters to the shareholders. They all sound positive.
On May 6, Mr. Gyamfi said that he is planning on launching a share buyback program which will improve the share structure a bit and last week, he announced that some of ANAS‘ products can now be bought on Amazon. He also informed us that the company is about to launch an interesting medical marijuana product called Five Hour High.
Undoubtedly, the announcements all sound extremely optimistic and Mr. Gyamfi said in his letters to the shareholders that the press releases to come will be even more exciting. We can’t, however, ignore a few questions.
If you take the latest PR, for example, you’ll see that Five Hour High seems to be ready to hit the market and the actual announcement says that it should be available in Colorado dispensaries by the end of next month. The article also informs us that the product has been developed by one of the leading manufacturers in the marijuana drinks and elixirs industry and yet, for reasons that are not very clear, they fail to mention the name of the creator.
There are some unknowns around the share buyback program as well. ANAS said in the press release that they won’t be relying on additional financing to set it in motion and Mr. Gyamfi himself assured the shareholders that they have the money and the means to reduce the number of issued and outstanding shares by a third. This means that ANAS will need to acquire and then cancel around 786 million shares and if they are buying them at the current market price, they’ll need around $5.2 million to do it.
According to the latest report, on March 31, they had:
- cash: $1,244
- total assets: $18,974
- total liabilities: $170,000
- quarterly revenues: $8,100
- quarterly net income: $1,244
Mr. Gyamfi and the rest of ANAS‘ management team are apparently convinced that the Alternaturals website (which, by the way, seems to be down at the moment) as well as the rest of their projects will be extremely successful. Unfortunately, only the future financial statements can tell us if they’re right or not.
Until then, doing your own research and due diligence before putting any money on the line is absolutely essential.
