GreenGro Technologies, Inc. (OTCMKTS:GRNH) Bounces on PR
For the past two months the stock of GreenGro Technologies, Inc. (OTCMKTS:GRNH) has been going nowhere but down and it seems that the company is unable to reverse its fall. Last week they suffered corrections for four sessions in a row closing just a nudge above 20 cents on Friday. Compared to its 52-week high posted at the start of the year when the marijuana hype as at its strongest the stock has lost more than 80% of its value. Even when compared to the most recent high of 70 cents GRNH are still down by more than 65%.
The depressing performance can be easily explained by the lack of results shown by the company. GRNH were one of the earliest pennystocks to jump on the marijuana bandwagon with their hydroponic equipment but the quarterly report filed last Thursday showed that at the end of March the company had still not generated even a dime in revenues:
- $228 thousand cash
- $443 thousand total current assets
- $60 thousand total current liabilities
- ZERO revenues
- $3.9 million net loss
Yesterday though the company issued a PR that finally managed to boost investors’ confidence in the stock. Apparently the two stores operated by GRNH have brought in around $140 thousand in sales for the month of April. Although the second store has been operational its grand opening has now been rescheduled for the weekend of June 28. The news was undoubtedly positive and as a result GRNH jumped by more than 15% closing the session at $0.23. Throughout the day 2.4 million shares changed hand, the biggest volume seen by the company in more than a month.
Still, investors must keep in mind that GRNH remains an extremely risky choice. The current market cap of $42 million is way too big for the company to support. Another major concern is the continued dilution of the common stock. In the three months covered by the report another 22 million shares were issued bringing the outstanding shares to 181 million out of the 200 
million authorized. 10 million of the freshly issued shares came into existence in March and had a conversion price of just $0.01. At the same time the lowest market price of the stock during that month was 44 cents.
million authorized. 10 million of the freshly issued shares came into existence in March and had a conversion price of just $0.01. At the same time the lowest market price of the stock during that month was 44 cents. After the long weekend two other marijuana pennystocks made significant recoveries. Terra Tech Corp. (OTCMKTS:TRTC) added more than 32% to their value and closed the day at $0.47 while Triton Distribution Systems Inc under their new name and ticker – Green Cures Inc. (OTCMKTS:GRCU) surged by 39% reaching $0.03 per share.
