North American Cannabis Holdings, Inc (OTCMKTS:USMJ) Jumps on Optimistic PR
On Friday the stock of North American Cannabis Holdings, Inc. (OTCMKTS:USMJ) caught a delicious boost of almost 19%. This was mostly due to yet another upbeat press release coming from the company shortly before the opening bell. By the time the markets closed USMJ stopped at $0.0098 per share.
After a mildly amusing presentation put up last week that somehow managed to juxtapose Procter & Gamble Co (NYSE:PG) – a multi-billion dollar corporation, with USMJ – a company that was cashless in early 2015 and has not made a dime in revenues over the last couple of years, USMJ went on to publish more optimistic news.
The company announced the filing of a pro forma financial statement to display the performance of its newest acquisition – a Texas-based “destination beverage” business. The pro forma is not yet submitted as an official filing, but is available through the OTC News and Disclosure service and reveals some very important things. Here is the consolidated balance sheet of USMJ and its new acquisition, for the year ended June 30, 2015:
- $150 thousand in cash
- $4.7 million in current liabilities
- $420 thousand in annual sales
- $231 thousand in annual gross profit
- $239 thousand in annual net loss
First of all, the $420 thousand in annual revenues are far closer to $400 thousand than to “almost half a million”, as previously announced. The headline of the press release mentions a 55% gross profit margin, which is also a fact but it never says that the bottom line is still a six-digit net loss.
Obviously, the company’s outstanding shares have grown from the 48 million reported as of March 2015 to a whopping 90 million. The pro forma states USMJ issued “notes” for the total of $550,000 in exchange for the asset it acquired. If and how those notes convert into stock is not detailed.
