Medical Cannabis Payment Solutions (OTCMKTS:REFG) Receives the Pump Treatment Once Again
Back in the summer of 2013, Medical Cannabis Payment Solutions (OTCMKTS:REFG), who were then called Refill Energy Inc, announced that they want to enter the booming medical marijuana business. Shortly after, a rather big promotional campaign started. As we wrote in our previous articles, the pumpers decided to use unconventional methods like radio advertisements to draw investors’ attention and they did manage to do it.
The ticker made a couple of spikes on a relatively high volume in August and it seemed at first that REFG might actually have some legs. Soon after, however, it started losing ground fast and the fall was accelerated by the wave of touting through landing pages and emails that we saw in October. On December 30, it reached its 52-week low of $0.135 which is a whopping 79% below the $0.60+ levels reached during the peak of the excitement.
Probably because of the horrific performance, investors seemed reluctant to put their money in REFG and it became the only OTC-listed marijuana stock to get off to a slow start of 2014. There were a few consecutive green sessions, but the volumes were negligible compared to the rest of the pot tickers. On January 7, the pumpers decided to do something about it.
A wave of email alerts from a number of promotional outfits flooded investors’ inboxes and the effects were evident on the very first day. REFG managed to rack up more than $300 thousand in dollar volume and around 48% increase in the price. A couple of corrections followed but yesterday, the ticker came back with a vengeance.
More than 3.3 million shares changed hands in just six and a half hours meaning that the trade value stands at nearly $720 thousand. At 9.62%, the daily gains aren’t shocking, but they do mean that the current share price is $0.228 which, in turn, commands a market cap of just over $17 million. Can REFG hang on to it though?
Well, the excitement around the marijuana industry and the constant touting from the promoters might have diverted investors’ attention away from the fact that REFG filed their quarterly report for the period ended September 30 a couple of days ago. If traders take a closer look at it, some of them might have second thoughts. Here’s a rundown of the most important figures:
- current assets: $35 thousand
- current liabilities: $36 thousand
- no revenue
- quarterly net loss: $22 thousand
Sure, the current statement does look better than the ones preceding it, but it’s not exactly confidence inspiring. It’s clear that REFG is in a desperate need of fresh financing, but unfortunately, we’re unable to find a press release informing us of such a transaction.
In fact, the latest announcement made by the company is dated November 20 and the eery silence surrounding REFG poses some questions around the progress they’re making with the clever mobile and software solutions.
You should also probably bear in mind that, as we mentioned in some of our previous articles, there’s no shortage of people who could potentially profit from the raised awareness around the ticker. During the first quarter of 2013, REFG issued 10 million shares as a conversion of just $10 thousand worth of debt. The discount is, as you can see, pretty substantial and it could have some serious effects on the ticker’s behavior which is why carefully considering all the risks is absolutely essential.
