American Cannabis Company Inc (OTCMKTS:AMMJ) Wipes More Of Its Gains

Pushed by the results found in the annual report for 2015 the stock of American Cannabis Company Inc (OTCMKTS:AMMJ) was able to reach highs of over 30 cents per share. The momentum quickly shifted, though, and for the last five trading days the company has registered four sessions of losses and one flat close. Yesterday the ticker corrected by over 6.5% and dropped down to 20 cents per share.

On April 22, over week after it had filed its annual report, AMMJ issued a PR about it but it failed to get investors reinvigorated. That shouldn’t be such a surprise, though. Instead of a boastful press release about its achievements AMMJ published a rather short article with the CEO of the company simply noting that their revenues grew from $1.26 million at the end of 2014 to $2.78 million for 2015. The company didn’t talk about its apparently amazing fourth quarter during which it generated more revenues than the previous three quarters combined. The staggering reduction of the net loss wasn’t mentioned, either.

But let’s open the report and see the whole picture. As of December 31, 2015, AMMJ had:

• $556 thousand cash
• $713 thousand total current assets
• $593 thousand total current liabilities
• $2.8 million annual revenues
• $516 thousand annual net loss

AMMJ remains a pennystock and as such jumping in without weighing the risks could prove to be extremely dangerous. After all, at the end of last year the company had convertible notes outstanding with a face value of $71,500 that could be turned into common shares at just $0.08 per share, price that is 60% lower than the current market price. Earlier this month AMMJ received a notice for the conversion of $58 thousand of that amount into over 720 thousand common shares.

In early trading today the ticker is trying to stabilize currently sitting half a percent in the green at $0.201.