Investor Edge Desperate to Pump Cannabis Kinetics Corp (OTCBB:CANK)
Cannabis Kinetics Corp (OTCBB:CANK) went through a reverse merger in May 2014 and just five months later, an outfit called Investor Edge said that they expect to receive a total of $300 thousand in order to send out some emails and try to pump up the new company’s share price.
$300 thousand is quite a lot of money, but unfortunately for the paying party (apparently its name is VisionPlus Communications, LLC), the promotion wasn’t off to the best of starts. Between November 11 and November 20, CANK dropped from over $1.30 per share to just $0.73 (a loss of more than 45%) and it did it on tiny volumes.
Apparently, Investor Edge realized that emails alone won’t cut it and, if some Seeking Alpha users are to be believed, the pumpers started calling people through the phone and giving them free investment tips. Needless to say, CANK was presented as a great place for your money.
Willingly or not, the company has also been lending a helping hand. At the end of October, CANK announced that it’s no longer a shell and since then, it has issued a few more optimistic press releases.
Yesterday, they said that they have developed their Monarch brand so well, that they are planning on changing the company name again. CANK will soon be called “Monarch America Inc.”.
This will be the third new name for CANK in less than two years which is generally considered by many as something of a red flag. Nevertheless, the press release, along with a fresh email alert from Investor Edge, helped bump up both the share price and the volume.
During yesterday’s session, investors traded nearly 170 thousand shares and pushed the price above the $1 per share mark for the first time since November 18. CANK is currently sitting at $1.04 which commands a market cap of a little over $32 million.
All in all, the company is saying that the business is moving along nicely and that everything is going according to plan. Apparently, investors are ready to trust the press releases.
The thing is, CANK‘s next report (the annual one for the period ended November 31) won’t be out before the end of February which means that if you jump in right now, you will have to take the management team’s word for it.
It’s up to you to decide whether you want to do this or not, but while you’re making up your mind, you must consider the fact that along with the name change, CANK also want to effectuate a 3-for-1 forward split.
The reasons for this decision were not given and we’re not sure how investors feel about it. We do know, however, that some people will feel pretty happy. Who are those people?
The ones we talked about in our previous article. The ones who have bought a total of 14.5 million shares (as adjusted for the previous splits) of CANK common stock for just $50,000. We’re quite sure that they are quite ecstatic about the split, actually.
