Solanbridge Group Inc (OTCMKTS:SLNX) Going Up Again

Last week Solanbridge Group Inc (OTCMKTS:SLNX) went through some interesting trading. The ticker started off on the straight and narrow, hesitated a bit on April 22, but then blasted out of the triple-zero levels and gained as much as 400% in a matter of just two sessions.

A correction was all but inevitable, and on Friday, SLNX slipped by around 17%. Yesterday, however, it came back with a vengeance and added an impressive 62% to its value while racking up a dollar volume of more than $400 thousand. Currently the ticker stands at $0.006 per share which is not bad for a stock that was traded at $0.0003 less than a month ago. But can SLNX hang on to the gains?

The whole brouhaha, it seems, is caused by a small paragraph in the latest annual report which informs us that the company has signed a memorandum of understanding with a Nova Scotia resident who appears to have a license to grow medical marijuana. The majority of investors seem pretty excited about the new adventure, but the ones who have been with SLNX for long enough know that things sometimes don’t work out as expected.

The same document, for example, tells us that on March 18, 2013, SLNX signed a letter of intent to purchase Pisano’s Restaurant in Palm Bay, Florida. No definitive agreement was reached.

On March 20, 2013, they announced their intentions to relocate their corporate headquarters. Considering the fact that their current principal offices seem to be located in a residential house, this was actually a rather good call. Unfortunately, for reasons that are not very well explained, SLNX later decided not to move the HQ.

Another agreement was entered into on May 14, 2013, this time for the acquisition of a restaurant called Thursdays Too located in South Carolina. Three months later, the agreement was canceled and, according to the filing, the restaurant remains permanently closed.

You can see that the list of past failures is not really short, but, in the interest of fairness, we should note that SLNX sometimes do manage to keep their promises. Last week, for example, David Green, the company CEO, announced that he wants to reduce the number of issued and outstanding shares by as much as 1.5 billion and yesterday, some documents appeared which could suggest that he’s in the middle of doing just that.

The regular investor, however, should bear in mind that the cancellation of shares won’t have a direct effect on the ticker’s performance. The stock that was returned to the treasury was owned by Mr. Green himself and it was restricted. As Thursday’s press release states explicitly, the float remains untouched.

As for the marijuana business, the future will tell us if SLNX are able to close the deal and become a cannabis company. If they do, however, they will be entering a fiercely competitive industry with a financial statement that doesn’t look like much. If they don’t do something about it, they could have some serious problems keeping their heads above the water.

Premier Mortgage Res (OTCMKTS:PMRS) is another wannabe pot stock that had an interesting session yesterday. It managed to gain as much as 31% while shifting around $477 thousand worth of shares. Vape Holdings Inc (OTCMKTS:VAPE)’s faith was a little bit different. It wiped out nearly a fifth of its market cap and racked up a dollar volume of just under $4 million.