Integrated Cannabis (OTCMTKS:IGPK)’s Pump Gets Blown to Pieces
The promotional campaign for Integrated Cannabis (OTCMKTS:IGPK) looked as if it was destined to fail from the very beginning.
The people paying $800 thousand for the whole show picked Stock Castle as the main outfit to carry out the pump which is a huge gamble since this particular newsletter has a reputation for sending unsolicited emails. We don’t know if their infamy has anything to do with it, but their last two picks, Imogo Mobile Technologies Corp (OTCMKTS:IMTC) and Nevada Gold Corp (OTCMKTS:NVGC), got suspended by the SEC in the middle of the awareness campaigns for them.
As if that wasn’t bad enough, when Stock Castle got called for IGPK‘s pump, they were tasked with artificially inflating the price of a company that has the following figures (or lack thereof) in its latest financial statement:
- total assets: $0
- total liabilities: $34 thousand
- revenue: $0
- yearly net loss: $300
It’s quite clear that there were a lot of factors that could scare away the more risk-averse investors, but nevertheless, at first, the pump seemed to work.
IGPK registered three consecutive green sessions last week and, aided by a lot of volume, managed to climb from just $0.15 per share all the way to $0.74. At that point, the market cap was hovering just above the $450 million market cap which, as you can see, was a bit of a stretch. A drop seemed inevitable and, sure enough, it did occur. What was probably surprising for most people, however, was the violence with which IGPK plummeted.
Despite the fact that on May 7, IGPK signed a letter of intent for the acquisition of a company called iComply, the ticker wiped out 40% of its value in just three sessions. Quite a lot of people were concerned about the dreadful losses, but Stock Castle, it would appear, were not among them. An email landed in investors’ inboxes on Saturday which tried to calm them down and assure them that the ticker is ready for another run. It wasn’t.
On Monday, IGPK wiped out 35% of its value and yesterday, just as everyone thought that things could not possibly turn any worse, it incinerated 48.3%. Currently it’s sitting at $0.15 which is nearly 80% below the pump-induced high.
If there’s anything good that can be said about the stock right now, it is the fact that the promotion seems to be officially over. We’ve received no emails over the last four days and the decrease in volume suggests that lots of the people who jumped in on the promotion are now simply walking away. But what will happen next? Will IGPK be able to recover from the wounds inflicted by Stock Castle?
This seems unlikely at the moment. The management team were quite excited about the letter of intent signed with iComply, but a couple of hours after yesterday’s closing bell, a press release hit the wire announcing the termination of the deal. Apparently, the former acquisition candidate has decided to look for other partners.
Considering IGPK‘s pump fiasco and the penny stock’s shattered reputation, we can’t say that we’re surprised.
And since we mentioned “shattered reputation”, we should also inform you about another promotion that has come to its inevitable end. The SEC decided that it’s finally time to take some actions against the $6.5 million pump for Pingify International Inc (OTCBB:PGFY) and a few minutes before today’s opening bell, they issued a temporary suspension order. What will Stock Tips say about it? We’re just as eager to find out as you are.
