Green Cures & Botanical Distribution Inc (OTCMKTS:GRCU) Surges
tags: GRCU
Right before the long weekend the stock of Green Cures & Botanical Distribution Inc (OTCMKTS:GRCU) dropped to an intraday low of $0.007, its lowest point for the past 5 months. The ticker not only managed to climb its way back up, though, but thanks to a last minute jump it actually closed the session with over 30% in gains at $0.012 per share. The sheer interest displayed by investors was also massive with 17 million shares changing hands in a single day compared to a monthly average of less than 500 thousand shares. Will GRCU be able to hold on to its gains?
Well, without a solid catalyst, and there was absolutely nothing supporting Friday’s move, the stock could quickly return to its slow slide down the chart. The fact that the last PR from June 14 when GRCU published their latest shareholder update had absolutely no positive effect on the stock’s performance, the company closed over 5% in the red that day, is also far from encouraging.
GRCU is indeed surrounded by red flags. At the end of 2015 the company had over 1.8 BILLION outstanding shares but in the first days of January it performed a 1-for-130 reverse split that reduced the O/S to around 14 million shares. Opening the latest quarterly report, however, reveals that in the first three months of the year GRCU issued 400 million shares priced at $0.001 to InStep Holdings, LLC. Investors should note that InStep’s sole member is Mr. Joe Tragesser, the CEO of GRCU. In addition, investors have to worry about the 127 million shares that were issued as a conversion of just $51, 044 in debt. This means that each and every one of these shares had an average price of $0.0004. As of May 13 GRCU had 600 million outstanding shares.
After Friday’s spike up the chart GRCU‘s market cap surpassed $7 million, valuation that can hardly be supported by the underlying fundamentals of the company. After all, GRCU finished the first quarter of 2016 with:
• $2,854 cash
• $8,384 total current assets
• $83,732 total current liabilities
• $6,800 revenue
• $1,640 net income
It should be obvious that the stock must be approached with utmost caution. Do your own due diligence and never invest unaffordable sums of money in any of the various pennystock companies.
