Latteno Food Corp (OTCMKTS:LATF) Sinks To a New 52-Week Low
Long gone are the days when the stock of Latteno Food Corp (OTCMKTS:LATF) was sitting above a cent. In fact when compared to its high of $0.02 posted in early 2014 the ticker has managed to wipe over 95% of its value. After crashing by another 11% yesterday LATF are currently sitting at $0.0008, not to mention that during the session a new 52-week record low of $0.0007 was posted. This latest correction took place on 264 million traded shares, the biggest volume registered by the company since the start of 2015.
There are many reasons that could explain the horrendous chart performance. The hype around the marijuana legalization disappeared almost entirely while at the same time the company has published only two official PRs for the past six months. Even the financial results of Latteno showed dramatic deterioration – the annual revenues for 2014 were nearly half of the amount reported for 2013. Yesterday the company submitted its financial report for the first quarter of 2015 and it showed that the negative trend is continuing. Less than two months ago LATF had:
• $38 509 cash
• $825 thousand total current assets
• $222 thousand total liabilities
• $3.2 million sales
• $253 thousand net income
The main reason why investors are refusing to put their trust in the company despite it stillg enerating millions in revenues and having a positive bottom line is the devastating dilution of the common stock.
If you want to see the true scope of LATF’s share issuance between January 2, 2013, and March 9, 2015 you can read the entire 57 pages of this Supplemental Information filing. If you want to see the final outcome we advise you to skip to last page – there you will find out that during that period 6.9 BILLION new shares had been issued. The printing presses are still churning more and more shares however and as of May 11 LATF had 8.2 BILLION outstanding shares out of the 10 BILLION authorized.
In order to meet its working capital needs in March Latteno sold two promissory notes totaling $29,708 thousand and two convertible promissory notes in the aggregate amount of $57 thousand. The company did not disclose the conversion price at which the two convertible notes can be turned into common shares.
The risks around LATF are far too numerous and far too serious to be ignored. Any trades involving the ticker should be preceded by extensive due diligence and careful planning.
