Solanbridge Group Inc (OTCMKTS:SLNX) Retraces a Bit
Solanbridge Group Inc (OTCMKTS:SLNX) lost nearly a fifth of its value yesterday while shifting almost $1.6 million worth of shares. The session was far from perfect, but most of the investors around the message boards don’t seem too bothered about the drop.
And why would they be? After all, less than a month ago, SLNX was sitting deep in the land of the triple zeros and right now, it’s hovering comfortably above the $0.01 per share mark. People reckon that yesterday’s correction was nothing more than a consolidation which should facilitate another strong run.
Time will tell they’re right, but while we’re waiting to see what happens, we might as well take a look at the reason for the impressive climb.
The share restructuring that the management team is performing at the moment is certainly playing its role. As you probably know, a lot of stock has been returned to the treasury over the last few weeks and although the canceled shares are not part of the float, the reduction of the O/S count certainly gives investors one less thing to worry about in the long run.
That, however, is not enough. The biggest cause for SLNX‘s run is to be found in the latest annual report. Apparently, on March 29, the company signed a memorandum of understanding with a Nova Scotia resident who holds a license to grow medical marijuana.
The prospects of the booming pot industry were apparently enough for a lot of investors to jump in. The report said that after a thirty-day due diligence period, SLNX should have some sort of agreement. On April 24, four days before the deadline, the company issued a press release which informed us that they will ink the deal on time. They didn’t.
Surprisingly or not, investors don’t seem all that bothered about the missed deadline and it must be said that SLNX‘s management team seems to be trying hard to keep their hopes up. On Monday, they announced that they’re in the final negotiations phase of the acquisition of an unnamed Colorado-based medical marijuana producer.
A few minutes before today’s opening bell, they informed us that they are also trying to acquire an entity called Tasty Greenz LLC who will, apparently, help them expand the product line. In addition to this, the MOU with the Nova Scotia resident has been expanded for fourteen more business days and there’s a new Chairman of the Scientific Board. His name is Dr. Mark T. Cullen and his CV is so impressive, that the company decided to publish it through the OTC Disclosure & News Service.
The press releases certainly sound positive and we’re hoping that this time, all the deadlines will be kept and everything will go according to plan. That said, there are some things we’re not too sure about.
The latest acquisition candidate, for example, Tasty Greenz, doesn’t appear to exist outside SLNX‘s press releases. And although Dr. Cullen’s CV sounds interesting, it also raises some eyebrows.
He is, apparently, still at the helm of Petrosonics LLC (not to be mistaken with Petrosonic Energy Inc (OTCMKTS:PSON)) who, a year ago, formed a joint venture with a penny stock called Green EnviroTech Holdings Corp (OTCMKTS:GETH). As we wrote back then, the deal caused a great deal of commotion on the market and GETH managed to reach a 52-week high of $4.02 per share because of it. Currently, it’s standing at just $0.30, the latest report tells us that the JV has been terminated, and it also informs us that GETH has less than $200 in the bank.
Will that hamper SLNX‘s progress? Only time will tell. Keeping all the facts in mind, though, is certainly a good call.
