American Green, Inc. (OTCMKTS:ERBB) Sails to New Lows Despite PR
Even though American Green, Inc. (OTCMKTS:ERBB) is doing its best to keep everyone happy and excited, the company’s stock is on the tail end of a five-day red streak that pushed the price to new 52-week lows. Yesterday ERBB closed another 7% down, stopping at $0.0064 on faded share volume.
The company dropped two press releases over the last couple of weeks. One announced the ZaZZZ machine became a “stand-alone bud tender” for the first time. Another stated that five more machines are “slated” for Kentucky, whatever that means in terms of time frames and deadlines before all five are set up and operational. Considering the machine that was “spoken-for” by Exhale Med Center in California back in late February was allegedly installed only last week, a good two months later, there’s no telling when the machines “slated” for Kentucky will be up and running.
The company has a single week until its next quarterly report becomes due. This filing has the potential to be the make or break point for ERBB. The company will need to deliver considerably better revenue numbers quarter over quarter, considering the PR informing how OG Tea grew its January sales 300% year over year and the email alert citing Truth Lighting sales growing every month.
The most important deciding factor is probably the company’s share structure. Assuming ERBB maintained its usual quarterly rate of issuing new shares to satisfy convertible debt, it’s likely that the AS is maxed out or close to it. COO and president Stephen Shearin reassured investors multiple times that there will be no reverse split. This would mean that either noteholders will magically stop converting their notes into shares, or there will be an increase of authorized shares to make space for new issuances.
Speaking of noteholders, those who still hold millions of dollars worth of convertibles can now convert at $0.0032 per share – 50% from the lowest closing bid price ERBB logged over the past 12 months.
