Greenfield Farms Food, Inc. (OTCMKTS:GRAS) Surges on Vague News, Hopes
Friday’s session saw Greenfield Farms Food, Inc. (OTCMKTS:GRAS) close 300% up, at $0.0016 per share. The stock ran as high as $0.0036 intra-day but cooled down significantly in the afternoon. The run was possibly prompted by a press release from GRAS.
Taking a look a little further back in time, there was a late May press release from GRAS, announcing the company was nearing completion of its acquisition of Carmella’s Pizzeria. The closing of the deal was scheduled for June 5, or last Wednesday, but instead of confirmation of the deal, traders got a different press release.
Before the open on Friday GRAS posted a release stating that ‘issues’ have arisen that would require additional consultations from both parties. How this non-conclusive press release prompted traders into shifting almost 400 million GRAS shares on the same day is not too clear.
The company had the following dismal financials as of the date of its latest report – March 31, 2013:
- $100 in cash, $4 thousand in total assets
- $498 thousand in total liabilities
- ZERO in quarterly revenues
- $83 thousand in quarterly net loss
In addition to the financial situation of GRAS, their acquisition target, Carmella’s Pizzeria, is another point of interest. Carmella’s have an Ohio-based mini-chain currently consisting of three restaurants that happens to offer 100% free delivery. The Facebook following of Carmella’s consists of a staggering 391 people, which could be some indication of the popularity of the brand. Additionally, the website of GRAS consists of several lines of text on a flat white background, as well as press releases dating back to 2011.
The acquisition of a locally known pizza chain by a company that has a market capitalization of under a million may be a match made in heaven. The question is, was there any materially significant event that should prompt GRAS stock to shuffle 300% up in a single day? Traders are best left answering this one for themselves.
One thing to keep in mind is that despite the attractive triple-digit green close, the price spent the afternoon dropping 50% from its spike, so there’s no telling which way GRAS may go in today’s session.
