Rocky Mountain High Brands, Inc (OTCMKTS:RMHB): New Ticker, New Authorized Count
In case you haven’t noticed already, Totally Hemp Crazy, or THCZ as it’s more commonly known around penny stock circles, has been traded under a new identity over the last few sessions. It’s now known as Rocky Mountain High Brands, Inc (OTCMKTS:RMHB), but it must be said that the new name isn’t really having much of an effect on the way the stock behaves.
Yesterday, for example, the management team announced that they have come up with a clever new college campus marketing campaign. They promised that it’s been tried and tested and said that it will help the company reach its target audience more easily, but despite this, the stock refused to move. It even slipped down about 0.2% and it closed the session at a hair over $0.09. But why is the re-branded stock reluctant to move?
The truth is, apart from the name, not much has changed over at RMHB‘s camp. Investors’ opinions, for example, are as split as before. Some reckon that RMHB is a once-in-a-lifetime opportunity to invest in a company that is about to explode. Others are convinced that there’s little difference between RMHB and the rest of the pink sheet companies that tend to leave quite a lot of disappointed investors behind.
It’s up to you to decide which camp you should join, but we must say that we can see why some people tend to be somewhat skeptical. The management team proudly announced way back in April that they have hired an accounting firm that was supposed to help them file a Form 10 with the SEC and turn RMHB into a fully reporting entity. Later, they announced that the annual report for the period ended June 30 will be published according to SEC’s rules and regulations.
In reality, neither of these things happened which means that right now, more than six months after RMHB started talking about up-listing to the OTCQB tier, the stock is still on the Pink sheets. It also means that people are forced to base their investment decisions on the statements that have been filed under the alternative reporting standards. Once you go through them, you’ll see that information is somewhat scarce.
On June 30, for example, RMHB‘s management team calculated that the outstanding amount under various convertible notes stands at about $1.5 million (or 98% of the total current liabilities). Then, however, they decided not to tell their shareholders what the conversion terms are which means that people can’t properly assess the risk of potential dilution.
What they can do is open the Nevada Secretary of State website and see that last week RMHB lifted the number of authorized shares from 600 million to 800 million. Then, they can ponder why the company failed to disclose this action in any of its press releases or filings.
