Strategic Global Investments, Inc. (OTCMKTS:STBV) Sinks To The Bottom
At the start of February the stock of Strategic Global Investments, Inc. (OTCMKTS:STBV) soared by 330% and closed the day above a cent per share. Such heights proved to be unsupportable and the stock quickly corrected back down. On February 10 the company once again attracted the attention of the market by announcing that they will be entering the marijuana industry through the acquisition of a growing facility based in the state of Colorado.
As a result they once again surged upwards adding 71% to their share price and closing at $0.005 while the intraday high was just short of 1 cent. Even the massive hype around the green plant proved to be unable to help the stock and on the very next day it started plummeting. As a whole in just a month STBV has been able to fall from above a cent to $0.0005 as of last Friday.
Even that price couldn’t be maintained and yesterday STBV slashed another 40% and are now trading at $0.0003. They have wiped close to 97% of their value despite the switch to marijuana. Although many of the pennystocks that entered the industry suffered through a series of corrections they were still able to keep at least a portion of the hype-induced gains. The difference between them and STBV can be summed up in just one word – dilution.
Since September 30, 2013 STBV has been churning out new shares bringing the outstanding amount from 207 million to 12 billion in just a little more than 4 months. Simultaneously the authorized amount was increased to 100 billion. You might think that after all this the worse is now over but sadly that is not the case. Currently the management of the company is trying to sell around 30 billion of shares priced at just $0.0001 in order to acquire $3 million in funds.
This is the third attempt to sell the shares after the first regulation A offering at $0.04 and the subsequent at $0.01 failed. Yesterday the company announced that it has managed to raise $1 million from the offering but the PR curiously enough failed to mention that the money came at the cost of 10 billion shares.
Apart from the dilution that won’t be stopping any time soon STBV are also having some troubles with the SEC who are still having quite a bit of questions about the submitted regulation A forms.
Even the newly acquired marijuana subsidiary Bearpot, Inc has little to offer as it is a recently created entity that apparently still needs to be “properly licensed and permitted” according to this PR.
