Growblox Sciences Inc. (OTCMKTS:GBLX) Explodes Up The Charts

Growblox Sciences Inc. (OTCMKTS:GBLX) lost 11.6% of its market value on Friday, as unconvinced investors withdrew from the company for a third session in a row. Now, the company is upward bound again, on news that hit the web after the session’s closing bell, and is making the ticker jump almost $1 in early trading today.

To elaborate – in the early hours of June 7, GBLX announced that it has secured a “special use permit” in Clark County, Nevada for its medical marijuana establishment through its local partnership, GB Sciences Nevada, LLC. Now, the company has to wait for the final approval of the state administration and will be applying for a state business license in the coming weeks.

This news stirred up marijuana stock enthusiasts, and is launched the company $1 up in today’s session, in the manner in which positive pot PR tends to do in recent months.

Still, investors would probably do well to remember that although this is certainly a step in the right direction, it is just that – one step – no less and no more. Sure, it brings GBLX closer to its current goal, but it doesn’t mean that the company is on the verge of a breakout, like many marijuana stock enthusiasts seem to believe.

Moreover, despite the good news, investors would do well to remember all the red flags surrounding GBLX. As previously discussed, its latest 10-Q alone contained a huge assortment of those – poor financials, lack of revenues, shocking amounts of toxic debt convertible into common stock at ridiculous discounts, disconcertingly high dilution rates. Investors may want to consider all of those very carefully before betting their money on GBLX.

Another marijuana company that lost 11.6% of its market value on Friday due to its PR going stale and is up in early trading today is Tranzbyte Corp. (OTCMKTS:ERBB).