American Green, Inc. (OTCMKTS:ERBB) Slips Further Down

Yesterday’s session was far from positive for American Green, Inc. (OTCMKTS:ERBB). The company’s share price took yet another blow, with ERBB sliding another 5.8% in the red. ERBB stock is 36% down month to date.

Volume was the second largest the company registered over the past month, at over 97 million shares. The order of the day was heavy selling it seems, as the stock spent the entire session below its previous close, with large volume spikes pressing it down.

ERBB‘s Q1 report is due this week, after the company filed for an extension and was granted an additional five days to obtain the ‘additional information’ required. Longs are keeping their fingers crossed, hoping the report at least contains a more reasonable balance sheet, where ERBB did not pay its full-time consultants more than it made in revenues. The share structure of the company will hardly see much improvement, as ERBB is neck-deep in severely toxic financing. The best case scenario would be if the company managed to steer clear of issuing any more of its notorious convertibles.

In the last quarter of its previous fiscal year ERBB issued just over $1 million in convertible debt. The catch is, this converts into common shares at a 50% discount from the lowest closing bid price 12 months prior to conversion. ERBB was trading at $0.001 in December 2013. This means that for another month and a half the note holders can choose to convert and grab shares priced around $0.0005.

The company’s Zazzz machine has been in the coming for over six months now, with multiple delays and missed launch deadlines. Investor enthusiasm seems to be running dry by now, but ERBB will have one last chance at redemption next month. The company stated that it has numerous orders for the Zazzz vending machine and those should be fulfilled in ‘early December’. It’s difficult to believe that even if this happens, it will be the 1,000 machines COO Stephen Shearin expected to have up and running by Christmas.