Grow Condos Inc. (OTCMKTS:GRWC) Pushed Over $2
Yesterday, the investors’ enthusiasm pushed Grow Condos Inc. (OTCMKTS:GRWC) very near the $2 threshold – and today’s session has pushed it far above said threshold.
GRWC‘s explosive market cap growth is indeed a wonder to behold. The ticker’s advance to the top of the charts seems inexorable, its momentum – unbreakable. But is that really the case?
Well, many investors seem to be of the opinion that after its latest acquisition, GRWC is on the fast track to success – but things are never that simple.
Commercial success largely depends on a company’s available resources and its ability to capitalize on an opportunity once one such presents itself. Suffice it to say that due diligence on GRWC‘s doesn’t really present it as a company with the former that is capable of the latter. No, in fact, its latest financial report looks like that of just your regular OTC Markets idle underachiever:
- Cash and cash equivalents – $3 thousand
- Total Current Assets – $21
- Total Current Liabilities -$226 thousand
- Rental revenues – $23 thousand
- Net loss – $135 thousand
What’s even worse is the fact that the mediocrity that’s evident in GRWC‘s filings is not even its biggest shortcoming. No, not by a long shot.
The biggest, most immediate threat to investor value here, as is most often the case with dubious OTC Markets penny stock companies, is toxic dilution. The company’s reports clearly indicate that back in November 2015, GRWC had around 45 million shares of its common stock issued and outstanding. About a week later, the company went through with a 1 for 20 reverse split. Logic dictates that such an event should have brought GRWC‘s number of shares outstanding to little more than 2.2 million. Just two months later, the company’s shares count of outstanding once more approached 28 million.
Once all those facts are taken into consideration, GRWC‘s continued ascent does not seem as certain as it did beforehand. Which is why we always advise due diligence and care when dealing with OTC Markets penny stock companies.
