AV1 Group, Inc. (OTCMKTS:AVOP) Through the Roof on Pot News
Yesterday AV1 Group, Inc. (OTCMKTS:AVOP) managed no small feat – the ticker bounced from an abysmal $0.0002 per share to a close 600% up at $0.0014. The reason is both simple and droll – the company announced that Marijuana Incubator Group, Inc. acquired controlling interest of AVOP.
The two sides of this new union are equally interesting. First of all who is AV1 Group? In short, it’s a Pink No Information enterprise stamped with the STOP sign on OTCMarkets that hasn’t filed a single financial report since the summer of 2011, almost three years ago. Even that horribly outdated report contained figures that are likely to put a frown on investors’ faces:
- $86 in cash
- $846 thousand in current liabilities
- ZERO in quarterly revenues
- $55 thousand in quarterly net loss
After reporting those numbers, the company went completely under the radar, with no real way for investors to know what has been going on over this huge stretch of time by market standards. With no press releases for a full year prior to the Marijuana Incubator news and no filings to shed any light on the company’s situation, it’s no wonder that AVOP was stuck at the absolute bottom of the charts, barely trading between $0.0001 and $0.0002 per share.
On the other side of the deal is Marijuana Incubator Group (MIG), who is now publicly traded through its reported controlling stake in AVOP. There is barely any information on MIG outside of its own description as an ‘ambitious’ company seeking success through JV and M&A agreements with marijuana businesses. Or seeking to quickly hop on the marijuana hype bandwagon on the OTC, which is also a possibility. Trying to find extra information on MIG through their website yields barely any useful information. There is no real content available except for a home page that contains a quaint block diagram explaining how MIG intends to create shareholder value, while he ‘Projects’ page is still empty.
Speaking of the company’s website, a quick domain lookup shows that MIG’s website was registered in March 2014, roughly a month ago.
With a no-info pink sheet that last reported abysmal figures nearly three years ago on one side and a company that has ‘marijuana’ in its name but very little else is known about it on the other, what could possibly go wrong? For those with a broken sarcasm detector – potentially, lots. There is, of course, no filing explaining the details of the deal described as a ‘friendly takeover’ in the PR.
We would like to once again remind our readers of the warning to investors that the FINRA re-issued in early 2014, named ‘Marijuana Stock Scams’ and echo its good advice that traders should avoid ‘getting swept away’ and should instead do their own due diligence and learn more about the company in question first. Sadly, in the case of AVOP, it’s practically impossible to do that due to the lack of any current information. The only reasonable thing to do in this case should by now be clear to everyone. If not, you may be better off consulting a certified investment advisor before you make any further decisions.
