Jammin Java Corp. (OTCMKTS:JAMN) Attracts Attention Once More
With the overwhelming hype around the marijuana industry dominating the markets for the past couple of months a lot of the more solid pennystocks that operated in other industries were pushed to side with little to no attention from traders. Part of these companies was Jammin Java Corp. (OTCMKTS:JAMN) a producer of gourmet coffee that last summer managed to reach more than 63 cents per share.
Since then the company has continued to steadily follow its business plan and despite the lack of attention from the market has been able to keep the majority of last year’s price gains, rarely dropping below 30 cents per share. Now that the marijuana craze has largely subsided investors are starting to look around and yesterday JAMN surged upwards on more than 1.3 million shares closing the session 14% in the green at $0.425.
As we said JAMN have been gradually adding more and more retail chains that offer their coffee brands and as a result revenues have continued to grow. According to the 8-K form filed early today the company finished its fiscal 2013 with:
- $3.6 million current assets
- $1.9 million total liabilities
- $6.4 million revenues
- $6.6 million net loss
These numbers show dramatics improvement over the results for the previous fiscal year but the company is still held back by its significant net loss. Unfortunately investors will have to wait until May 16 for the whole annual report to be submitted in order to see the full picture of JAMN‘s fundamentals.
At the end of April the company entered into a subscription agreement with Mother Parkers Tea & Coffee, Inc., the company that produces JAMN‘s coffee brand in addition to being the food service provider for Canada. According to the agreement Mother Parkers purchased 7.3 million units, consisting of 1 common share and 1 warrant, priced at $0.34 each, or $2.5 million. The price of the units didn’t feature any major discounts and was close to the market price at the time. Another huge boost for investors’ confidence in the stock should be the fact that the exercise price of the warrants is actually 150% of the price of the units or around $0.51.
Having a real product and solid operations certainly puts JAMN ahead of the majority of pennystocks but doing your due diligence is still mandatory before jumping in. In early trading today JAMN are starting to correct falling close to 35% down at $0.403. At the same time Hemp, Inc. (OTCMKTS:HEMP), one of the oldest marijuana pennystocks, is sliding further and further down the chart wiping another 4% in early trading today sitting at exactly 5 cents at the moment.
