NoHo, Inc. (OTCMKTS:DRNK) Steamrolled After Going Dark
In yesterday’s session NoHo, Inc. (OTCMKTS:DRNK) tripped and fell on its face. The company’s share price got sliced by a third by the closing bell, with DRNK closing 33% down, at $0.004. This far greater slide took place on daily volume nearly equal to Tuesday’s 40.8 million shares traded. Unlike the climb that preceded it, this drop has a very clear-cut trigger, and one that is closely related to the company.
On Tuesday DRNK announced the termination of all its filing obligations and essentially went dark. The company put up a Schedule 15 filing, pursuant to Section 12(g) of SEC regulations. This essentially means that, being a company with under 300 holders of record, DRNK let go of its filing obligations.
The company had a spectacular run up the charts a few days ago. Sadly, nothing materially significant or newsworthy happened at DRNK. It seems the run of another OTC stock working in the same sector – Hangover Joe’s Holdings Corp. (OTCMKTS:HJOE), affected DRNK and gave it a free ride up the chart. That’s not to say that HJOE had any real reason to run outside of a relentless hype campaign conducted primarily through Twitter, but it does seem DRNK piggy-backed on the other stock’s movement.
Now that DRNK has given up on public reporting, newcomers to the stock have a lot to consider. The suspension of filing duties came at a point in time when DRNK was already late with its annual report for 2014. As of May 15 the company should have actually submitted its Q1 report as well, but that’s obviously not going to happen.
On the subject of DRNK‘s share structure, there are claims on investor discussion boards that the company’s transfer agent, First American Stock Transfer, confirmed DRNK as having 329 million shares outstanding and 262 million of those are allegedly free trading. While we have not verified this claim, the only thing that is known for certain with DRNK is that it last officially reported having 19,3 million shares, but reached a peak daily volume of 61 million shares in a single session on Monday.
