ENDEXX Corp. (OTCMKTS:EDXC) Continues to Crash
At the start of the year the stock of ENDEXX Corp. (OTCMKTS:EDXC) benefitted greatly from the marijuana hype and it soared from $0.05 to more than 20 cents in just a few weeks. Even though at these heights its performance become a lot more hesitant it still posted quite a few days with sizeable gains and in mid-March surged to its 52-week high of $0.359. Well, at that moment investors decided to start taking profits and since then EDXC have been going nowhere but down.
For the last 20 sessions the company has barely managed to log in only five days in the green. Yesterday the negative momentum picked up even more speed and EDXC crashed hard wiping more than 20% of its value and dropping down to 15 cents per share. Throughout the day nearly 2.9 million shares got dumped on the market.
On Monday they tried to reinvigorate investors by releasing another PR article but it remained largely unnoticed by the market and with a good reason – all it contained was the inforamtion that the company will be presenting its interactive vending machines for marijuana products at the Big Industry Show in Denver. If EDXC want to keep at least some of their price gains they will have to show a lot more than this. Especially when their financials for the quarter ending December 31 were:
• ZERO cash
• $165 thousand total current assets
• $1.6 million total current liabilities
• ZERO revenues
• $64 thousand net ordinary loss
• $165 thousand total current assets
• $1.6 million total current liabilities
• ZERO revenues
• $64 thousand net ordinary loss
Although such numbers speak volumes even by themselves the report revealed a lot more troubling facts. Take a look for example at the general and administrative expenses and you will see that EDXC spent $2194 for meals and entertainment while costs for research and development were just 440 dollars.
Despite the massive losses in share price EDXC still commands a market cap of $29 million which is grossly disconnected from the reality of the company. With the whole marijuana industry still feeling the effects of Growlife, Inc. (OTCBB:PHOT)’s 
suspension any trades in the sector should be initiated with extreme caution. Take into consideration all the risks around the stocks and plan accordingly.
suspension any trades in the sector should be initiated with extreme caution. Take into consideration all the risks around the stocks and plan accordingly. 