Integrated Cannabis Solutions, Inc. (OTCMKTS:IGPK) Falls Off the Cliff After Promotion

Integrated Cannabis Solutions, Inc. (OTCMKTS:IGPK) arrived only a while ago, and is now ready to depart. The high-flying new MMJ ticker climbed from 20 to 75 cents in a couple of days. But this Wednesday, IGPK lost more than 33%, scaled back to $0.495 on selling volumes of $2.4 million. Unfortunately, the vast promotion of IGPK could be cut very short from another round of suspensions in the sector, for companies that are under over-zealous promotional campaigns.

Speaking of a large promotion, it’s been a while since we’ve seen a campaign of this size. Until May 8th, IGPK was mentioned in 11 emails with a total compensation of $800,000. Unfortunately, yesterday’s events meant that IGPK went the way of all promoted companies, crashing significantly. This also coincides with a day when the already depressed Marijuana index dropped by more than $3.80, with most companies in the red. But the loss for IGPK was even higher than the usual setbacks for the sector.

The latest email for IGPK is from Stock Castle, and the paying party for most of the messages is Digvar Flin Ltd., an entity especially created to take up IGPK. This coincides with the name change for the company, from Integrated Parking Solutions, Inc. until April.

We wonder what prompted the high stock price, when IGPK is worse off financially than many newcoming cannabis companies, holding the following horrifying figures:

• cash: $0

• current assets: $0

• total liabilities: $33,989

• revenues: $0

• net loss: $300

With all those red flags, the only thing that may attract investors again would be the expectation of a recovery, which could bring a bit more short-term gains. Even investors’ forums contain opinions that it may be time to load up IGPK. On the other hand, there are those that expect IGPK to be targeted for suspension, a move which first affected Growlife, Inc. (OTCBB:PHOT) and caused a slide across the board for pot stocks.

IGPK is yet another company offering peripheral services to more down-to-earth cannabis businesses. Without a license itself, the firm would offer mostly legal and medical consulting. The latest PR from IGPK also matches this plan, as the latest acquisition was of a compliance and consulting company, iComply, LLC, a business especially targeted to the MMJ market. The acquired company is a strange entity that uses Facebook to advertise itself. Besides, the deal between the two companies is still at a preliminary stage, with only a letter of understanding signed.

The model for IGPK resembles the indirect cannabis business of Premier Brands, Inc. (OTCMKTS:BRND), a publicity and marketing company that announced a possible inclusion of MMJ products to its portfolio. This caused the BRND trading volumes to go a bit thicker in the past month, but BRND remains suppressed at $0.0017.

The main force for IGPK remains the promotion, so beware of picking up the ticker now that it looks finished, as there may not be a bottom to the losses.