The Excitement Around Tauriga Sciences, Inc. (OTCMKTS:TAUG) Continues to Grow
2013 was certainly not a good year for the shareholders of Tauriga Sciences, Inc. (OTCMKTS:TAUG). For most of the year the company was sliding towards the bottom but at the start of December it started plummeting downwards dropping to an all-time low of $0.0035. Not all was lost though and with the start of 2014 TAUG is once more attracting the attention of investors.
On January 28 they acquired Pilus Energy LLC, a company that develops a rather interesting piece of technology – BactoBots. These bots are actually bacteria capable of extracting useful substances from industrial wastewater. The news was certainly positive but the market reacted in the opposite way and TAUG closed in the red for the next four sessions.
What really helped the stock break out was, not surprisingly, their intention to enter the marijuana industry. On February 19 the company signed a memorandum of understating for the acquisition of a California-based producer of topical medicinal cannabis products.
In the past two months we have seen many pennystocks skyrocket on the day they announced the switch to marijuana only to fizzle and drop back down when the enthusiasm starts to subside. For now TAUG is not following the trend and is climbing upwards.
Yesterday the stock opened with a gap up, remained relatively stable during the session and closed the day 60% up at $0.05 per share. The absolute record for the company number of 53 million shares changed hands throughout the day resulting in a total dollar value of $2.8 million.
The excitement was sparked by a PR article informing investors that TAUG and the still unnamed company have managed to sign a definitive agreement for the acquisition. Under its terms both companies will have 120 days to finalize the transaction. Furthermore TAUG said they will disclose all the details about the mysterious cannabis company within the next 10 business days.
Equally as important TAUG were able to sign the acquisition agreement within the required deadline and thus entered into a $1 million securities purchase agreement with an institutional investor. The PR contained little concrete information about this deal and no 8-K form for it has been filed as of yet.
Judging by the latest quarterly report the company almost desperately needed such an influx of fresh funds. At the end of the period ending December 31 TAUG were left with:
- cash: $57 thousand
- current assets: $109 thousand
- current liabilities: $1.38 million
- no revenue since inception
- quarterly net loss: $1.6 million
The recent developments may sound promising but TAUG demands the use of caution when dealing with their stock. For the three months covered by the report 175 million new shares were issued bringing the outstanding amount to 400 million out of the 1 billion authorized. There are more convertible notes outstanding so the dilution is likely to continue. Do your own due diligence and avoid making decision based solely on hype.
While most of the older marijuana pennystocks like HEMP, Inc. (OTCMKTS:HEMP) suffered through a series of harsh corrections Growlife, Inc (OTCBB:PHOT) is continuing to conquer new heights. Yesterday their stock added 20%, broke through half a dollar and closed the session at $0.55.
