Investors Are Getting Impatient With Neutra Corp (OTCBB:NTRR)

After announcing that they are joining the medical marijuana business, Neutra Corp (OTCBB:NTRR)’s shares did what everyone was expecting them to do – they jumped sky high. The announcement came at the end of March and in a few short days, NTRR reached their 52-week high of $6.50 per share. The performance during the last couple of weeks, however, has not been quite as promising and yesterday, they closed the session below the $1 mark – something that has not happened for almost two months. So, what went wrong?

Well, for one, there hasn’t been much news around the company. There are quite a few press releases, but not much in terms of actual information. Take the PR from May 8, for example. The headline sounds extremely promising telling us that NTRR are about to expand their horizons in the medical cannabis business, but when you open and read through what they actually have to say, you will see that they don’t really have anything to shout about. Apparently some negotiations are being carried out but we get no information on who the other parties are, and there are no expected deadlines for the signing of agreements, joint ventures or partnerships.

They are already part of one joint venture with a company called PurLife Distributions, Inc. The agreement was signed back in February and it has absolutely nothing to do with NTRR‘s medical marijuana business. The lack of news around the partnership, however, leads us to believe that it’s not exactly flourishing.

As for the medical pot nutraceuticals business, it’s still way too early to call it since they have been at it for less than two months. One thing is for sure – NTRR‘s new CEO, Mr. Sydney Jim, will have his work cut out for him getting the ball rolling with the sort of financials found in the latest annual report. It covers the twelve months that ended on January 31 and we have summarized the figures below:

• total assets: $7,100
• total liabilities: $272 thousand
• no revenue since inception
• yearly net loss: $365 thousand

And since we mentioned the brand new CEO, we also have to say a few words about the old one – Ms. Cindy Morrissey. The press release informing us about the changes in the management team is dated May 3 and it says that Ms. Morrissey is retiring after years of leading start-up companies. And that got us wondering: “Haven’t we heard that name before?”.

Of course we have. The last time we mentioned her was when we were covering one of Aristocrat Group Corp (OTCMKTS:ASCC)’s pumps and if you read through our article, you will see that Ms. Morrissey is also at the helm of Emerging Healthcare Solutions, Inc. (EHSI) – a company whose shares got suspended by the SEC due to lack of information and constant touting by websites and newsletters. Still, she’s gone now and there is absolutely nothing to worry about, right? Probably. But we’re not 100% sure.

If you have a look through one of our previous articles on NTRR, you will see that until about a month ago, they shared their headquarters with one of the most heavily promoted companies this month – Enviro-Serv Inc (OTCMKTS:EVSV) f/k/a Transfer Technology International Corp. (PINK:TTIN). NTRR apparently saw that and according to the 8-K informing the public about the resignation of Ms. Morrissey and the appointment of Mr. Jim, they have a new address (3572 Shady Brook Lane, Sarasota, FL 34243) . We can spot two problems with that.

The first is quite obvious from the picture on the right – it’s a suburban house in Florida and you would agree it’s not really suitable for controlling the operations of a company that is about to start making millions.

The second one is that in NTRR‘s annual report for 2012 the same exact address is quoted as Ms. Morrissey’s home residence. We know that it’s all a bit of a conspiracy theory, but this fact still raises the question: “Is Ms. Morrissey really out of NTRR now?”.

Whatever the answer, we reckon that doing your own due diligence and conducting a proper research is absolutely critical before jumping in on the medical marijuana craze that has been around NTRR for the last couple of months.