Rocky Mountain High (OTCMKTS:RMHB) Recovers On News
Rocky Mountain High (OTCMKTS:RMHB) managed to step 13.65% up the charts on Friday, after posting yet another piece of optimistic PR.
Apparently, many investors took the news that RMHB has partnered with Ojai Energetics as gold, and thought that it was good enough of a positive development to warrant jumping at RMHB‘s stock.
Which is where this whole situation becomes problematic.
There seems to be no official filing about that “partnership” as of the present moment – which makes it more than a bit suspicious. Further, since Ojai Energetics is not a reporting OTC Markets company, we don’t really know much about it, other than the fact that it has a functioning web-store, full of various cannabis products.
However, we can’t really be sure how much of an asset that partnership will be for RMHB – which is why all of the enthusiasm surrounding it was probably unwarranted, or at the very least – premature.
Then again, it seems that any optimism about RMHB is premature, because, if its financial reports are any indication, company’s overall current situation appears quite grim indeed:
- cash – $100 thousand
- current liabilities – $2 million
- quarterly sales – $313 thousand
- quarterly loss from operations – $385 thousand
Still, in spite of the sorry financial state that RMHB is in, the company’s biggest shortcomings are probably related to its share structure.
Suffice it to say RMHB has issued approximately 78 MILLION shares of commons stock since September 2015. Another 68 million shares were issued during Q3 and Q4 of the fiscal 2014, at a rate of $0.001 per share.
All of these red flags suggest that investors should probably be more wary of, and less hyped up about, RMHB.
