General Cannabis Corp. (OTCMKTS:CANN) Makes A Recovery?
General Cannabis Corp. (OTCMKTS:CANN) managed another green session yesterday – but is this latest jump the harbinger of an enduring change in direction?
Not necessarily. As the old saying goes – even a dead cat can bounce if thrown from high enough – and a look at the charts ascertains that CANN fell from very high up indeed. And while some may protest to the analogy between this particular company and a deceased feline, the metaphorical similarities between the two are also undeniable.
Just like a dead cat, CANN has very little going for it. The company’s latest financial report was an ugly sight to behold:
- Cash – $59 thousand
- Total current assets – $246 thousand
- Total current liabilities – $3.7 million
- Annual revenues – $1.76 million
- Annual net loss – $8.78 million
Those numbers are discouraging to say the least – and we haven’t even come to the meat of the issue at hand.
The fact of the matter is that CANN‘s struggle under crushing debt and its continued failure to make ends meet is not even the biggest threat to investor value that its reports reveal. No, the thing that most immediately threatens investor value is the company’s tendency towards toxic dilution. Suffice it to say that 619 thousand stock options for the purchase of shares of CANN‘s common stock at a fixed price of $0.6 that were outstanding the last time the company reported. Need we say more on the matter?
Long story short – the chances of CANN‘s jump turning into a prolonged surge, or even of the ticker retaining ground, seem rather slim at the moment, which is why investors would do well to proceed with caution with regard to the ticker.
