NoHo, Inc. (OTCMKTS:DRNK) Catches Fire

After months of deflating chart performance in 2015, NoHo, Inc. (OTCMKTS:DRNK) finally caught a break over the last couple of sessions. On Friday DRNK jumped 95%, then followed this up with yesterday’s 79% green close. Daily volumes went through the roof as well, with 61 million shares changing hands yesterday. As of yesterday’s closing bell, the share price stopped at $0.007.

In the last month alone DRNK had five zero-volume sessions. The company’s latest press release came in early April. As it happens, DRNK is also a month and a half late with its annual 2014 report. The deadline extension the company filed for zoomed by, back in mid-April. So, in the absence of any press releases or new filings, what exactly is driving DRNK up the chart so quickly and in such large daily volumes?

The only reasonable explanation seems to be that the recent run charted by Hangover Joe’s Holdings Corp. (OTCMKTS:HJOE) boosted interest in anti-hangover drinks enough to give DRNK a free ride as well. There are more similarities between the two companies, beyond the fact that they both claim they produce the best hangover recovery shots in the world. Both DRNK and HJOE are late with their annual reports and are stamped with the red “Pink Limited Info” sign on OTC Markets.

The most current DRNK report available dates back to September 2014 and contains the following:

• $72 thousand in cash
• $3.5 million in current liabilities
• $281 thousand in quarterly revenues
• $1.0 million in quarterly net loss

The company’s share structure is another problematic matter. In short, there’s no way to know exactly how many DRNK shares are outstanding at the moment. The latest DRNK filing is a Schedule 13G, which reveals that 1.97 million shares represent 10% of the outstanding shares the company reported back in September. This is completely useless as the September share count was present in the September quarterly. The SC 13G filing would have been useful if it contained information on the number of outstanding shares as of the date it was submitted – May 8. No such info is provided, so it’s anyone’s guess how many shares outstanding DRNK has at the moment.

Then there’s of course yesterday’s daily share volume – DRNK traded 61.9 million shares in a single session. Traders can probably figure out on their own how likely it is that there are still 19.7 million shares outstanding. With no annual report and a new useless Schedule 13G, it’s anyone’s guess. DRNK has 760,000,000 authorized shares, so basically the sky is the limit.

With a missing filing and a share structure likely ballooned out of proportion compared to the last reported share counts, extreme caution is advisable when looking at DRNK stock, especially given how far up it has run on virtually no news.