American Green Inc (OTCMKTS:ERBB) Rears Its Head Once More
After months of simmering along the bottom edge of double-zero prices, in yesterday’s session American Green Inc (OTCMKTS:ERBB) reared its head above the water once more. The stock closed 17% up, making a double-digit green move for the first time in months. By the closing bell ERBB stopped at $0.0027 per share.
The reason for the move was not related to ERBB, its stagnant operations or any materially significant change or news release from the company. ERBB‘s latest filing is the company’s abysmal annual report that went public in late September and contains the following:
- $49 thousand in cash a/o June 2015
- $7.6 million in current liabilities
- $623 thousand in annual revenues
- $8.7 million in annual net loss
The disappointments ERBB served investors over this last fiscal year are perhaps too numerous to list here. The most significant ones include the shrink in revenues in Q3 to just around $63 thousand, despite all the collaboration agreements, JVs and sales of OG Tea and Truth Lighting products.
There is of course the matter with the ZaZZZ machine flop as well. In early August ERBB simply announced the ZaZZZ machine rollout failed to achieve a “sustainable level of sales”. This led to the umpteenth redesign announcement for the vending units. In a hilarious paradox, ERBB stated dispensaries could not devote enough manpower to “configure and maintain” the ZaZZZ, even though the ZaZZZ’s main purpose was to alleviate the workload of dispensary staff.
In early October ERBB informed that the TrackX acquisition announced in late June was cancelled and transformed into a “software reseller agreement”. The TrackX acquisition was listed as one of the chief reasons ERBB increased its authorized shares from 4.75 to 7.75 billion this summer.
Of those 7.75 billion, 5.18 billion were already filled up with outstanding common shares.
With nothing new directly related to the company’s operations and no official news, ERBB‘s move up was probably driven by the broader sector excitement that spurred a number of other pot stocks up the charts. This in turn is likely caused by today’s Ohio vote for legalization and the California legislative push for recreational legalization.
