Minerco Resources, Inc. (OTCMKTS:MINE) Crashes Along With The Marijuana Sector
On Tuesday and Wednesday the stock of Minerco Resources, Inc. (OTCMKTS:MINE) tried to reclaim at least some of its lost positions and managed to return to 2 cents per share but yesterday their momentum came to an abrupt end. MINE plummeted right from the opening bell and in minutes found themselves at $0.016. It managed to climb back up again but the support was brief and at the end of the day MINE had lost another 21% sliding down to $0.0158.
The company hasn’t officially joined the marijuana industry but their trademark registration for “The Herbal Collection” has led many investors to consider them as one. As a result their stock is often influenced by the sways of the marijuana pennystocks which is not always for the best. Yesterday the SEC suspended trading in the stock of Growlife, Inc. (OTCBB:PHOT), largely regarded as the bellwether of the industry.
The effect of the suspension was so profound that it plunged the entire sector downwards with most of the stocks wiping double digit percentages of their value. Medical Marijuana, Inc. (OTCMKTS:MJNA) dropped by 11% to $0.23 per share while Fortitude Group, Inc. (OTCMKTS:FRTD) slashed 18% and returned to $0.043. MINE have scheduled a conference call for next week when they should reveal how the negotiations with their note holders and lenders have gone. But judging by the three 8-k form filed this week things seems to be moving in the right direction.
In our previous articles we warned investors that MINE have burned through most of its 2.5 billion authorized shares with 2.1 billion outstanding at March 20. Now the company has started to take steps to improve its share structure and have successfully prepaid two notes in the principal amount of $52 000 and $27 000. A few days earlier they were able to terminated the share purchase agreement with Kodiak Capital Group, LLC for a total of $2000 in legal fees and 2 million restricted shares.
This was certainly an encouraging first step but MINE has a lot more convertible notes to take care of according to the latest quarterly report. The report also revealed that sales of the COFFEE BOOST and RISE products after four months of commercialization have resulted in the rather depressing $5147 in revenues. At the same time the company used $13 000 in cost of goods sold. If the company wants to keep at least some of its recent gains it must show a significant increase in its operations because hype and expectations can last for only so long.
