GreenGro Technologies, Inc. (OTCMKTS:GRNH) Make A Sudden Jump Up the Chart

Yesterday investors showed a rather substantial increase in interest towards the stock of GreenGro Technologies, Inc. (OTCMKTS:GRNH). Throughout the session nearly 3 million shares got traded, amount that is twice the average volume for the company and over six times higher than the volume for the previous session. As a result of the buying pressure GRNH surged up the chart and closed the day with a 25% gain at $0.119.

Back in September the ticker made a similar upward move but it was almost immediately followed by a devastating negative trend. The slide brought GRNH to a low of $0.08, the lowest point registered by the stock for the last 9 months. Should investors expect a different outcome this time though?

Well, yesterday’s surge is not supported by anything immediately obvious. The last PR issued by the company came at the start of the month and it talked about the progress of their BP Gardens. Apparently the initial infrastructure has been put into place and now both locations are gearing towards planting their first crops of leafy greens. Sadly, no concrete dates were mentioned in the article and it may be a while before the next update.

Back in July GRNH also announced that they had entered into a contract for the acquisition of a hydroponics retailer in the Denver, Colorado area. The store was supposed to become the third location to operate under GreenGro’s Vertical Hydrogardens brand. The deal was expected to close by the end of August but even now no new information about it has been disclosed. 

In August though GRNH signed an acquisition agreement with Tricor Mechanical Inc., a Southern California construction company and provider of HVAC systems which allows them to acquire 51% of Tricor for a total of 15 million shares that should be issued before the end of the year.

Meanwhile according to the latest financial report at the end of the second quarter of the year GRNH were in a rather depressing state with:

• $136 thousand cash
• $653 thousand total current assets
• $472 thousand total current liabilities
• $299 thousand revenues
• $1.5 million net loss

Such numbers may not be able to justify the current market cap of more than $20 million. Investors should also keep in mind that millions of extremely cheap shares have been issued. For the first half of the year GRNH issued around 30 million shares, 10 million of which were priced at just $0.01. In July another 750 thousand were issued at the same price.

At the start of the year GRNH were among the pennystocks that rode the marijuana hype to its fullest briefly spiking to a high of $1.20. At the moment though they are sitting over 90% lower. The company is still as risky as ever and any investment should be attempted only after doing serious due diligence.