Minerco Resources Inc. (OTCMKTS:MINE) Walking On Thin Ice

Minerco Resources Inc. (OTCMKTS:MINE) had a major slip on April 29, when the company all but announced that it’s withdrawing from the marijuana business in its investor conference call. Despite its best efforts, MINE is yet to recover from the ensuing crash.

Up until just recently, MINE could easily be classified as a “fledgeling pot-stock company”. It had been slumbering in double zero land for some time until just two months ago, at which point it gathered a lot of following through the media exposure that joining the marijuana branch always ensures. The company rode the marijuana hype to the top of the charts for a while, but its ascent seems to be over now. The last ten sessions have brought MINE investors almost nothing but grief, in spite of the good news and PR the company has provided on numerous occasions.

On May 7, MINE announced that it had procured $2 million worth of financing, in the form of a traditional Line Of Credit from Post Oak LLC, with a 10% annual interest rate. The loan, along with due interest, is to be returned over the span of two years. Which is, overall, a manageable feat, and a preferable alternative to the toxic funding the company has been so fond of in the recent past, especially as far as investors are concerned.

Scott Vanis, the Chairman and Managing Director of MINE, was especially optimistic about the loan, as the flexibility this move will give the Company breathing room and the opportunity to “expand multiple brands, streamline operations and realize revenues, simultaneously”.

Suffice it to say that, although it was plentiful, optimism about the fizzy drinks product line failed to bring marijuana-enthusiastic investors back. As a result, the ticker fell deeper and deeper into the red zone, right up until Friday’s turbulent session when it managed to finally break its descent – though just barely.

Currently it is impossible to tell how long will the fragile stability, that we saw then, last, especially now that MINE‘s lost its main upward drive. The only thing that is certain is the fact that presently MINE is in a most precarious position, and investors would do well to be extra careful when dealing with it.

Another company that’s currently struggling with the volatility of the marijuana market is Tranzbyte Corp. (OTCMKTS:ERBB), who lost 2.28% on Friday.