Easton Pharmaceuticals Inc. (OTCMKTS:EAPH) On Its Way Up Again
Yesterday Easton Pharmaceuticals Inc. (OTCMKTS:EAPH) stock jumped all the way to $0.0752 because of the newest developments in marijuana legalization.
EAPH hasn’t had a filing, press release or pump for some time, so it’s safe to assume that its upward movement was mainly due to the news that hit the wire before the weekend. The promise of government officials that marijuana companies and legitimate cannabis retailers will be allowed access to banking services made a big splash, and is pushing the whole marijuana branch upwards even now.
Thanks to this announcement, companies like Tranzbyte Corp (OTCMKTS:ERBB) and Creative Edge Nutrition Inc. (OTCMKTS:FITX) are presently soaring, but is the news really all that big of a deal for EAPH?
It is true that last Thursday banks were promised that they will not be prosecuted for servicing legal marijuana retailers. However any financial institution that agrees to do so is to be burdened with keeping a close eye on said clients and filing special reports, even when dealing with honest and reputable marijuana businesses.
This restriction, in combination with the fact that federal policy on sensitive subjects can change instantaneously, explains most banks’ lack of enthusiasm for providing services to pot vendors and companies. It is true that the legal marijuana market has become a multi-billion dollar industry over the course of two months, and is expected to grow five times in just as many years, but is it really worth the risk?
A healthy dose of skepticism does seem to be in order, especially when dealing with EAPH. The fact of the matter is, lifting the banking ban isn’t likely to improve the company’s commercial success much in the foreseeable future. Although it fancies itself a pot stock and has more cash on hand than some of the competition, some due diligence reveals that EAPH has not made a single dollar from revenues since it was founded in 1998. Furthermore nothing in EAPH‘s financial reports and activities even suggests that this state of events is going to change any times soon. Here are some numbers taken from EAPH‘s last financial report:
- cash – $95 thousand
- current assets – $208 thousand total
- total current liabilities – $406 thousand
- net loss – $47 thousand
Despite said unconvincing facts, EAPH closed 34.53% up yesterday.
