NOHO Inc (OTCMKTS:DRNK) Comes Up with Some Much-Needed News
NOHO Inc (OTCMKTS:DRNK) hasn’t been a particularly enjoyable ride over the last twelve months or so. About a year ago, the ticker was hovering around the $1 per share mark, but it soon found itself on a steep downward slope which eventually led it to the 52-week low of $0.001 registered at the beginning of May.
It did show some signs of life last month when it took advantage of the spike experienced by Hangover Joe’s Holding Corp (OTCMKTS:HJOE), another penny stock with a similar business plan, but on May 19, DRNK‘s management team filed a Form 15 terminating the stock’s SEC registration and ruined the party.
No reasons were given for the action and they didn’t even tell us if they want to continue filing their reports through the alternative reporting standards. Basically, they left both the shareholders and potential investors in the dark. The stock bore the consequences. In a matter of just over two weeks, DRNK dropped from $0.007 per share all the way to $0.0019. Yesterday, however, it bounced.
More than 62 million shares changed hands in a matter of six and a half hours and the ticker went up by a healthy 26%. It closed the day with a price of $0.0024 and a dollar volume of just under $190 thousand. That’s not bad for a stock that has the ability to wipe out more than 70% of its value in a matter of just two weeks.
The bounce was caused by a press release which hit the wire about an hour and a half before yesterday’s opening bell. It said that DRNK now want to develop, manufacture, and sell a new type of pain relieving beverages that contain cannabidiol. They won’t be doing it on their own. A letter of intent has been signed with a company called Miracle Smoke Inc. and a definitive partnership agreement should be inked before the end of the month.
Speaking of partnerships, a few of the older press releases suggest that there seems to be no shortage of companies willing to work with DRNK. And that may seem somewhat strange considering the fact that no more than a year ago, Jay Grdina, DRNK‘s CEO, was sued for constructive fraud, breach of contract, as well as numerous other misdemeanors. Funnily enough, the lawsuit wasn’t reported in DRNK‘s Q3 of 2014 statement and we don’t know what has come out of it, but it’s probably worth bearing it in mind. Mr. Grdina’s previous business relations are far from the only problem, though.
The lack of current reports means that we’ve no idea what the company has been doing over the last eight months. We do know for certain, however, that DRNK‘s printing press has been working overtime. According to the latest 10-Q, there were about 19 million shares issued and outstanding in November 2014. The company profile at the OTC Markets now says, however, that the O/S count stood at more than 327 million on May 8. In other words, DRNK was diluted by 1,592% in a matter of just seven months.
Investors can do little more than guess where all the newly printed stock has gone. They should bear in mind, however, that there was quite a lot of convertible debt outstanding at the end of September 2014. The discounts, as is often the case, range from 35% to 40%.
