Greenhouse Solutions, Inc. (OTCMKTS:GRSU) Sinks Below $0.10
After an inexplicable surge up the chart at the end of last week Greenhouse Solutions, Inc. (OTCMKTS:GRSU) appear to now be in a state of free fall. Investors seem to have taken advantage of the increased interest towards the company to shed their holdings and as a result the ticker has been crashing hard for the past two sessions. On Tuesday it wiped over 28% of its value and dropped to a close at 10 cents per share while yesterday it crashed by another 20%, this time falling to a close at $0.0799.
If you are looking for a reason that could explain the extremely negative sentiment towards the company you won’t have to look for long – the red flags around GRSU are both numerous and extremely serious. Let’s start with the fact that the company hasn’t issued a single PR, outside of its SEC filings, for close to seven months. Such a prolonged silence is sure to erode any confidence that investors might have had in the company.
When you add GRSU‘s dire financial state to the mix things get even grimmer. The latest quarterly report filed by the company covers the three months ended December 31, 2015, and contains the following numbers:
• $4,971 cash
• $34 thousand total current assets
• $101 thousand total current liabilities
• ZERO revenues
• $2.4 million net loss
That is right, at the start of 2016 the company had less than $5000 in cash reserves, underwhelming total assets of $35 thousand, and a staggering net loss. There is also the lack of any subsequent events disclosed for the period between the start of the year and May 3 when the report was submitted, which means that GRSU might not have been able to raise any additional funds. By the end of the month the company should complete its annual report and when it gets filed we will see if GRSU have managed to improve their balance sheet.
On their official website GRSU state that the hemp-infused beverage they are jointly producing with KOIOS Inc should be launched in 2016 but we are approaching the end of the first half of the year with no updates on the company’s progress.
For now GRSU remain an extremely risky choice that must be approached only after doing extensive due diligence and careful planning.
