American Green Inc (OTCMKTS:ERBB) Reaches A New 52-Week Low

[[tagnumber 0]][[tagnumber 1]]This year hasn’t been very kind to the stock of American Green Inc (OTCMKTS:ERBB) which has been sliding down the charts, constantly reaching new lows. Meanwhile, the company is constantly trying to hype investors up, but it seems it’s not working.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The financial situation of the company is also quite grim, despite the fact that [[tagnumber 6]]ERBB[[tagnumber 7]] is actually generating some revenues. Here is just an example of some of the numbers of prime interest from the company’s report for the first quarter of the year.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 11]] [[tagnumber 12]]cash: $254 thousand[[tagnumber 13]] [[tagnumber 12]]current assets: $677 thousand[[tagnumber 13]] [[tagnumber 12]]current liabilities: $7.22 million[[tagnumber 13]] [[tagnumber 12]]quarterly revenues: $257 thousand[[tagnumber 13]] [[tagnumber 12]]quarterly net loss: $1.23 million[[tagnumber 13]] [[tagnumber 22]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]But looking more closely into these numbers suddenly makes them even more distressing. Not only are the current liabilities of [[tagnumber 6]]ERBB[[tagnumber 7]] quite massive, but a total of $4.63 million of them are in the form of debentures payable and accrued interest.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Meanwhile Stephen Shearin, [[tagnumber 6]]ERBB’s[[tagnumber 7]] COO kept his word and the company will not be exercising a reverse split. Instead, the management of American Green decided to up their authorized share count by another 3 billion to 7.75 billion in order to give the company breathing space.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]They just slid that info in the final paragraph of their latest press release which came in Friday and announced the launch of a new online store. [[tagnumber 6]]ERBB[[tagnumber 7]] did manage to start the week rather stable, but it seems that the notion of the incoming dilution has caught up with investors and we saw the ticker slide 16.22% down yesterday and close at $0.0031, reaching a new 52–week low.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The company stock seems more stable in today’s session and is sitting 3.23% in the green as of the writing of this article. With a market valuation of $12 million, a horrible balance sheet and the news of imminent dilution, however, we can expect it to return to sliding very soon. In any case, be sure to do your due diligence and weigh out the risks before putting any money on the line.[[tagnumber 2]]