Green and Hill Industries, Inc. (OTCMKTS:GHIL) – Another Marijuana Pennsytock To Get Pumped
Since the start of the year the SEC has showed an unprecedented level of activity resulting in a multitude of suspended stocks. In addition to investigating pump stocks though the SEC has been scrutinizing the marijuana industry for possible scams and manipulations. They even issued their own investor alert which detailed the various dangers around the industry. Just two days ago they did the same for promoted stocks.
Despite all this the various pump outfits operating in pennyland not only seem to be unfazed but they have started touting companies involved in the marijuana market combining the risks of both types. The latest promotional campaign seems to be for the stock of Green and Hill Industries, Inc. (OTCMKTS:GHIL) who yesterday surged by 38%, broke through the $1 mark and closed at $1.12. Despite the relatively expensive price levels investors still managed to exchange more than 455 thousand shares.
For now the pump is mainly carried out through a landing page but with a disclosed weekly budget of $200 thousand it is highly likely that a few pump newsletters will also start touting GHIL. So let’s see what the company has to offer.
Just a couple of months ago GHIL were actually trying to make it big within the ever so popular oil and gas industry. Unfortunately they weren’t even remotely successful and at the end of January had exactly:
Just a couple of months ago GHIL were actually trying to make it big within the ever so popular oil and gas industry. Unfortunately they weren’t even remotely successful and at the end of January had exactly:
- ZERO cash
- $1000 total assets
- $175 thousand total current liabilities
- ZERO revenues
- $45 thousand net loss
With results such as these the management of the company decided to ditch their old business and join the emerging marijuana industry. On March 3 they entered into a reverse merger agreement with Rebagliaty Gold Enterprises Inc. The CEO of the combined entity will be the Olympic gold medalist Ross Rebagliaty and their goal will be to establish the marijuana brand Ross’ Gold.
The problem is that the financial state of Rebagliaty Gold Enterprises is only marginally better that GHIL’s. At the end of 2013 they had $33 thousand total assets, $128 revenue and a net loss of $180 000.
In addition to the dismal results of both companies investors have to also notice that back in October, 2013 GHIL issued 25,9 million shares after a couple of notes were converted. Each of the shares was priced at just $0.001 while the current market price of the stock is above a dollar. With the increased attention generated by the pump campaign these people stand to gain millions when they sell their holdings.
GHIL should be regarded as nothing more than an extremely risky pump play. It is vital to weigh in all the possible risks around the stock before attempting any trades if you want to avoid any unnecessary losses. The stock of ITonis Inc (OTCMKTS:ITNS) also made a significant jump during yesterday’s trading adding 29% to its price and closing at $0.0129. The stock was boosted upwards by a 1-day promotion carried out by StockFreak, who expect to receive $400 thousand for their services.
