Greenfield Farms Food, Inc. (OTCMKTS:GRAS) Manage to Reverse Their Negative Slide
Since mid-February the stock of Greenfield Farms Food, Inc.(OTMKST:GRAS) has been invariably dropping towards the bottom of the chart. They lost 80% of their value, fell into triple zeros and reached as low as $0.0005. But with a couple of encouraging news articles they managed to rekindle investors’ enthusiasm which resulted in an incredible performance during yesterday’s session. The ticker tripled in price and closed at $0.0016 with nearly 400 million shares changing hands.
GRAS is a small company with limited operations. They started out with the idea of producing graasfed beef and have been distributing it to a retailer in North and South Carolina. Ultimately they failed to expand their activities and decided to change the direction of their business. Before we go into further details about it, let’s see what they have in the form of financial reserves. In the quarterly report for the period ending March 31, they disclosed:
- $100 cash
- $1540 total current assets
- $498 thousand total liabilities
- No revenues for the period
- $83 thousand net loss
We believe no further elaboration is needed as these dismal numbers convey quite clearly the dire situation of the company. At some point they were even forced to accept a $100 loan from one of the company’s officers.
As we mentioned GRAS is searching for other opportunities, So how did they manage to secure their first exclusive licensing agreement with Hill Meadow Foods, Inc.? The answer is not that complicated when the management of Hill Meadow Foods is headed by the former Greenfield Chief Executive Officer, Mr. Larry Moore. In a not so surprising turn of events even the acquisition of Carmela’s Pizzeria, previously announced to be closed on June 5, has run into several issues and has been postponed.
The stock may continue climbing on expectations about the positive conclusion of the acquisition. But ask yourselves if a company with an official site looking like this is a sound choice for a long-term investment.
