New PR Fails To Push GroGenesis Inc (OTCMKTS:GROG) Upwards
The stock of GroGenesis Inc (OTCMKTS:GROG) has been forming a rather depressing chart pattern for the past two months as it fell from a high of over $1.05. Although the stock bounced from its new 52-week low of $0.3142 per share it has not been able to form a more prolonged recovery.
Yesterday the company published a new PR and initially it seemed that it is drawing investors back in. The stock opened at $0.4158 but quickly spiked to a high of the day of $0.455. During these first minutes of the session the majority of the daily volume of 473 thousand shares got registered. Unfortunately the press article didn’t contain anything of matter as it can be viewed as comprised entirely of fluff. As a result the stock dropped sharply back down, investors walked away and by the time of the closing bell GROG were sitting 3.6% in the red at $0.40.
As we said the outcome of the session should have been expected when the only thing that GROG had to announce was that the company “has resolved to refine the market segmentation and commercial roll out potential for its first two products: AgraBurst and AgraBlast”, whatever that may mean. At the same time the reported financials remain nothing short of a total nightmare. The quarterly report for the period ending February 28 contained the following numbers:
• $118 cash
• $20 806 total current assets
• $343 thousand total liabilities
• $2876 revenues
• $91 thousand net loss
It is true that on March 9 GROG managed to boost its balance sheet by $15 thousand through the sale of 45 thousand shares priced at $0.35 but even with that the fundamentals of the company remain completely disconnected from the current market valuation of $32 million.
The only thing that enabled GROG to reach prices of $1 per share was a paid pump. The landing page touting the stock that was created by the entity Untapped Wealth is still active to this day. According to its disclaimer the pump has a budget of $150 thousand per week and if this is indeed the case the total sum that has been splashed on the promotion has surpassed $1.5 million. From time to time GROG has also been touted by pump newsletters with the latest email coming from Investors Alley on May 21.
With over 40 million out of the currently outstanding 81 million shares being issued at a split-adjust price of just $0.0008 and a plethora of red flags GROG remains a risky choice for investment. Keep in mind that recently the company increased its authorized shares to 750 million.
