Grow Condos Inc. (OTCMKTS:GRWC) Climbs Above A Dollar
Grow Condos Inc. (OTCMKTS:GRWC) managed a 27% jump in yesterday’s trading after issuing an encouraging PR announcement – but will it be able to turn this jump into a lasting surge?
The news of GRWC’s acquisition of 35 units under management in Eugene, Oregon drove the ticker up the charts and up the list of the OTC Markers’ most traded tickers – that much is true. However, there are more than a few reasons to believe that this state of developments will not last.
Let’s look at some due diligence on GRWC, shall we? Its latest financial report looked like this:
- Cash and cash equivalents – $3 thousand
- Total Current Assets – $21
- Total Current Liabilities -$226 thousand
- Rental revenues – $23 thousand
- Net loss – $135 thousand
Those numbers hardly belong in the filings of a company that’s worth $30 MILLION. No, rather, a company whose achievements are so meager should probably not be worth as much – and this certainly does not bode well for the chances of CRWC continuing its ascent, or even retaining its ground.
But, believe it or not, there’s an even bigger red flag sticking out of GRWC’s reports. A quick check reveals that the number of shares of the company’s Common Stock outstanding as of November 12, 2015 was 44.8 million. November 19 saw the company perform a 1 for 20 reverse split, which should have brought its shares outstanding to about 2.2 million. By the time February 3, 2016 rolled along, that number had already grown all the way to 28 million – and 5 million of those shares had entered into existence as a direct result of the company’s CEO converting shares of preferred stock at a ratio of 5 to 1.
By now, it should be abundantly clear why investors should be careful and more than a bit suspicious of GRWC’s activity. As usual, we advise due diligence and due vigilance when dealing with dubious marijuana tickers.
