Marani Brands, Inc. (OTCMKTS:MRIB) Breaks Through 1 Cent
Although some may say that passing the 1 cent mark is not such a big deal, for many of the pennystock companies that is an impossible feat. Marani Brands, Inc. (OTCMKTS:MRIB) are not one of those companies and their stock has been on a tear lately. In less then 4 months they managed to leave behind both the triple and double zero territories.
After reaching a high of $0.015 the stock lost some steam and suffered corrections but during yesterday’s session they once again skyrocketed. Opening at $0.007 MRIB surged upwards and at closing time were sitting at $0.0108, just shy of their high of the day. Traded volume also exploded with more than 40 million exchanged shares throughout the day.
Looking at the chart it is easy to conclude that MRIB have just recently started their operations but that couldn’t be further from the truth. The company was founded in 2001 and after going through several name and business changes in 2008 it finally settled on the distribution of alcohol products, mainly vodka. Well, their first attempt didn’t progress much and the company fell off the face of the trading world for a couple of years.
Now, after some restructuring they are ready to try again. With a $40 million contract for distribution of their vodka to Brazil for the period of 5 years the company guaranteed itself attention from the market. In November they also announced that in order to meet the demand for their product they are going to increase the monthly output of their distillery to 20000 cases. Before you get too optimistic though there are some things that need careful consideration.
In the last financial report for the quarter ending September 30, MRIB disclosed the following financial results:
- $564 cash
- $135 thousand total current assets
- $1.8 million total current liabilities
- zero revenue
- $194 thousand net loss
The CEO of the company has said that $1 million in debt has been removed but it is not clear if the change is covered by the report. The company will also need some significant influx of fresh funds if they are planning to keep their part of the distribution agreement. For now at least they are not targeted by any paid pumpers. Although this is undoubtedly a huge plus the company remains a risky bet for investment without doing your own research.
Earlier this year we already witnessed the performance of two other pennystocks that aspired to make it big through their own brands of vodka. Premier Brands, Inc. f/k/a Tracksoft Systems Inc (OTCMKTS:BRND) relied on the notoriety of Dennis Rodman to push their Bad Boy Vodka in the right direction but that didn’t happen. On the other hand Aristocrat Group Corp (OTCMKTS:ASCC) were supported by a high-budget pump but the end results were much the same.
