Plandai Biotechnology, Inc. (OTCMKTS:PLPL) Slides Further Down
At the end of January the stock of Plandai Biotechnology, Inc. (OTCMKTS:PLPL) was pushed through the roof thanks to the combination of marijuana hype, low-budget paid pump and the company’s own barrage of PR articles. Back than in just 7 sessions PLPL climbed from a little more than half a dollar to more than $2.50 while also posting its new 52-week high when it briefly spiked to $3.12.
Unfortunately for the pumpers PLPL‘s latest financial report has made the task of touting the company quite hard indeed. The report was filed on February 19 and since then the company has managed to close in the green only 5 times and investors have quite valid reasons to be worried. At the end of December 31 PLPL had:
- $131 thousand cash
- $142 thousand total current assets
- $2.6 million total current liabilities
- $13 thousand revenues
- $3.3 million net loss
Although the company has been logging in revenues they are generated by the sale of timber and not by any of the products PLPL has been talking about in its PR articles. The two Phytofare products – Catechin Complex and Limonoid Glycoside Complex are still under development and despite the branding agreement with Diego Pellicer, Inc. the medical cannabis side of the business has not progressed much further.
Investors should also note that the company’s biggest expense consisting of $914 thousand out of the $1.16 million total expenses can be found under the Salaries & Wages line.
As of February 5 the number of outstanding shares has reached 125 million and it is only going to go up. PLPL is able to sustain its operations only through the issuance of shares and last month they entered into a stock purchase agreement with Lincoln Park Capital Fund, LLC for up to $15.3 million that should keep them afloat for now.
With no completed product, discouraging financials and an ongoing pump PLPL is an extremely risky bet for investment. Despite the recent drop the company is still commanding an overly-inflated share price of above a dollar so be sure to carefully do your own due diligence before putting your money on the line.
Investors should also keep in mind that just last Friday the SEC suspended trading in the stock of Petrotech Oil & Gas Inc (OTCMKTS:PTOG). PTOG were among the pennystocks that decided to join the marijuana industry in the past two months but what most likely brought the suspension was the paid pump touting the stock.
