New Generation Consumer Group Inc. (OTCMKTS:NGCG) Crashes After Filing
New Generation Consumer Group Inc. (OTCMKTS:NGCG)’s 10-Q for the first quarter of 2015 afforded it little respite – the ticker plunged another 11.89% in yesterday’s session.
Truth be told, much like last time, the financials that NGCG reported are not great, but better than many on the OTC Markets and certainly preferable to those of most other companies in the marijuana branch:
- Cash and cash equivalents – $150 thousand
- Total Current Assets – $544 thousand
- Accounts payable – $5 thousand
- Note payable – $ 80 thousand
- Gross revenues – $471 thousand
- Net Income – $112 thousand
The facts that NGCG‘s current liabilities are virtually non-existent and that it is making serious revenues and it manages to scrape a profit is certainly nice. Still, financials aren’t why the ticker is currently sitting at $0.016 and looks like it may be headed even lower in the following sessions. Dilution is to blame for that.
A quick recap of the company’s share structure and its changes over the last few months looks like this:
- On Oct. 2014 NGCG performed a 1 for 1,000 reverse split, which left it with just1.6 million shares outstanding
- On Dec. 31, 2014 NGCG‘s outstanding share count was 56 MILLION
- On Feb. 4, 2015 NGCG‘s outstanding share count was 484 MILLION
- On Mar. 31, 2015 NGCG‘s outstanding share count was 584 MILLION
Yes, that’s right – in the three months alone, NGCG has printed another 100 MILLION shares. This sudden influx of stock looks like it is to blame for the ticker’s current crash.
Now, some sort of silver lining could probably be found in the fact that NGCG‘s filings indicate that there isn’t much more debt on convertible notes due and payable. However, the company’s authorized shares are currently 750 MILLION – so there’s still quite a lot of room for toxic dilution.
