Plandai Biotechnology, Inc. (OTCMKTS:PLPL) Wipes Gains Once More
After the positive start of the week which saw the stock of Plandai Biotechnology, Inc. (OTCMKTS:PLPL) rise by nearly 10% to close at $1.68 they suffered another crash on the very next day. PLPL bombed right from the start and in less than an hour dropped down to $1.34 per share. Although the stock managed to climb upwards a bit at the end of the day it had still lost more than 16% trading for $1.40 per share. By now the company has slashed 55% off of its peak of $3.12 posted last Monday.
If you have followed our previous articles about the company you wouldn’t be surprised that the amazing run that brought PLPL to price ranges above $2 in just 6 sessions was fueled by nothing more than hype. Apart from thir own barrage of fluff PR articles PLPL have been touted by paid pumpers for nearly a year and the promotional efforts are still going strong. The latest email alerts were sent by OTC Stock Center for a compensation of $8000.
On Monday the company announced that it has entered into a stock purchase agreement with Lincoln Park Capital Fund, LLC under the terms of which they get access to a total of $15.3 million over the period of 30 months. The deal looks promising and it will give a much needed boost to PLPL‘s financials that at the end of September 30, 2013 were:
- $375 thousand cash
- $453 thousand total current assets
- $819 thousand total current liabilities
- $226 thousand revenues
- $753 thousand net loss
Still the positive effect on the chart performance proved to be rather short-lived. And investors certainly have a reason to be cautious. The deal took place on February 4 when Lincoln bought 480 thousand shares for the sum of $300 000 in addition to the 540 thousand shares they received as consideration for their commitment.
So they received a total of 1.02 million shares for just $300 000 or $0.29 per share. On the same day PLPL had already started crashing but still they opened at $2 and closed at $1.61. Even after yesterday’s session the stock is trading for nearly 5 times higher that 29 cents.
But PLPL was far from the only marijuana pennystock that took a hit. Even the two industry leaders Growlife, Inc. (OTCBB:PHOT) and Medical Marijuana, Inc. (OTCMKTS:MJNA) closed in the red with PHOT dropping by close to 5% to $0.315 while MJNA is unable to stop its steep slide or a fourth session in a row losing 12% and closing at $0.264.
