Greengro Technologies Inc (OTCMKTS:GRNH) Is Going Up
tags: GRNH
For the last three sessions the stock of Greengro Technologies Inc (OTCMKTS:GRNH) has been climbing higher and higher up the chart. The daily volumes have also been growing – from 1.1 million shares on Wednesday to nearly 4.9 million on Friday. After sitting 13.12% in the green at the end of last week the stock reached a close at $0.0707 per share.
The uptrend was sparked by the new PR that GRNH published on June 29. In it the company announced the signing of a Memorandum of Understanding with Cannabrands AG, an Austrian based private equity company. GRNH expects this agreement to bolster its position in the marketplace with the company anticipating an upsurge in demand for farming capacity. Although the press release didn’t contain any concrete details it seems that was enough to reinvigorate investors.
Jumping in without taking the risks into account, though, could be dangerous. It is true that GRNH appear to be in a far better shape than the majority of the pennystocks finishing the first quarter of the year with:
• $204 thousand cash
• $992 thousand total current assets
• $645 thousand total current liabilities
• $197 thousand revenues
• $173 thousand net loss
Back in April GRNH announced record breaking revenues for the first quarter of $522 thousand but the financial report revealed that $330 thousand of that sum was actually recorded as deferred revenue. Investors should also note that despite the 30% year-over-year increase in the quarterly revenue GRNH‘s gross margin for the period went down as a result of higher costs.
GRNH has also been issuing sizable amounts of shares – last year 54 million shares were issued for consulting services while 7 million came into existence at $0.005 per share as a conversion of debt. During the first quarter of 2016 another $40 thousand in debt was turned into 8 million shares at the same price per share of $0.005. And while during the period no shares got issued for consulting services the subsequent events section of the report showed that between April 1 and May 25 12 million shares were issued for just that.
The positive reaction to last week’s PR could be enough to push the stock further up the chart but caution is still advised. Do your own due diligence before committing to anything.
In early trading today GRNH is up by another 7.5% sitting at $0.076 per share.
