Green and Hill Industries, Inc. (OTCMKTS:GHIL) Climbs Higher on Pump
On Tuesday the stock of Green and Hill Industries, Inc. (OTCMKTS:GHIL) burst onto the scene surging upwards by more than 34% and closing the day at $1.12. On that day the record number of 455 thousand shares got traded on the market. Yesterday the stock picked up even more momentum and jumped by another 26.7% reaching $1.42 per share. Despite the high price levels of the stock traded volume nearly doubled the one from the previous day with 788 million shares changing hands.
In our previous article we discussed GHIL’s entrance into the marijuana industry through a reverse merger with Rebagliati Gold Enterprises, Inc. The new business plan of the company doesn’t actually involve the growing of the plant but instead they are going to focus on establishing the brand Ross’ Gold named after the Olympic Gold medalist Ross Rebagliati. Mr. Rebagliati was also appointed as the new CEO of the combined entity.
Unfortunately the impressive run displayed by the stock and the record level of attention were generated by a pump campaign. For now the promotion is carried out by Breakaway Stocks through a landing page touting the company. Taking a look at the disclaimer at the bottom of the page reveals that the pumpers have a weekly budget of $200 thousand.
Yesterday the management of the company decided to issue a PR addressing the current developments around their stock. In it they denied any connection with the ongoing pump campaign. Furthermore, they pointed out quite a few false statements made by the pumper. We will see if the PR will influence today’s trading but for now GHIL still commands a ludicrous market cap of more than $143 million.
The problem is that both of the two former companies were in an extremely dire financial state. Rebagliati Gold finished 2013 with $33 thousand total assets, $128 revenue and $180 thousand net loss while GHIL had even less at the end of March 31, 2014.
Looking through the filings we also found that back in October, 2013 GHIL issued 25,9 million shares as a conversion of $25 900 debt. This makes the conversion price of each share just $0.001 and the people holding them stand to gain millions at the moment.
Any trades involving the stock of the company should be preceded by extensive due diligence. The red flags around the stock should not be underestimated and neither should be the possibility of a SEC investigation. After issuing an investor alert about the dangers around the marijuana penystocks, this Monday the Commission did the same for the pumped stocks.The stock of ITonis Inc (OTCMKTS:ITNS) was also boosted up the chart by a paid pump but yesterday the company was barely able to keep its gains closing less than a percent in the green at $0.013
