Growblox Sciences Inc (OTCMKTS:GBLX) Turns Green Again

After the 9% correction on Monday, Growblox Sciences Inc (OTCMKTS:GBLX) bounced back up and closed yesterday’s session with around 16% in gains. The dollar volume at the end of the day stood at $1.24 million which is nowhere near as big as the one logged at the start of the week, but nevertheless, people seem excited about the future. Message boards are buzzing with activity and some investors reckon that GBLX has enough steam to reach $3 per share. Others seem convinced that the $5 mark isn’t that far off.

And why wouldn’t they be? Last week, the company announced its new headquarters and said that the revolutionary medical cannabis growing chambers are now rolling off the production line. This week three more press releases told us that the ticker has been added to the Marijuana Index (which is apparently keeping a close eye on the more popular pot stocks), that a $5 million private placement has been completed, and that GBLX are going to capitalize on the future decriminalization of cannabis in Puerto Rico.

All in all, the announcements coming out of the company HQ are extremely positive and if all the forward-looking statements transform into some sort of cold, hard facts, GBLX might indeed be in for a further surge towards the higher end of the chart. But is everything really so simple?

It could be. Then again, considering one or two things might not be a bad call. The press releases, for example, though very optimistic, sound extremely vague.

The PR about the first growing chambers being completed said that GBLX will receive them in their headquarters within a couple of weeks and announced that quality control will be performed by some experts in the area. GBLX didn’t, however, tell us when the chambers are going to be ready for sale or how much they will cost.

When they announced the relocation of their principal offices to Nevada, GBLX said that they’re doing it because it will accelerate the patenting process, but they somehow forgot to mention what the address of their new headquarters is.

We saw pretty much the same thing with the private placement which was announced a few minutes after Monday’s closing bell. GBLX‘s latest financial statement doesn’t look like much and everybody knows that they need the $5 million raised through the sale of stock. Unfortunately, they didn’t say how many shares were issued as part of the transaction and because they haven’t filed an 8-K form, details are impossible to come by.

As you can see, the press releases sound exciting, but in reality, they lack some pieces of the puzzle that could prove to be extremely important later on. There is one more thing you need to bear in mind before jumping in – GBLX is in the pumpers’ crosshairs.

The campaign started a couple of days ago, the outfit in charge of it is called MJStockReport, and the disclosed compensation amounts to $150 thousand. This doesn’t seem like much, but nevertheless, the pump is proving to be relatively successful.

If you are one of the people who believe the emails, you might want to take a good look at GBLX‘s recent 8-K forms. If you do, you’ll see that between March 25 and May 5, the company converted around $574 thousand worth of debt into nearly 2.2 million shares. If the conversion continues, the effects on the stock could be rather painful.