TOTALLY HEMP CRAZY (OTCMKTS:THCZ) Jumps Above 10 Cents
Totally Hemp Crazy (OTCMKTS:THCZ) continued to make huge moves up the chart ahead of their shareholder meeting that took place this Saturday. The enthusiasm showed by investors pushed the company 26.2% higher on Thursday and just below 17% on Friday. As a result of the increased buying currently THCZ sit at $0.107 per share.
The upswing from last week put an end to the stocks prolonged downtrend that saw THCZ move down from the over 30 cents in April to a low of $0.056 registered on September 17. Even after the sizable gains from the last few sessions the ticker is still over 66% lower than its 52-week high. Will the positive performance continue though?
During the shareholder meeting THCZ should have revealed their upcoming products as well as address some of the problems the company is facing. Early in the morning today a PR summarizing the important topics discussed during the meeting was published and if it generates enough hype the stock could continue moving north.
Investors shouldn’t forget though that despite the increased revenues generated by the company THCZ‘s financial state remains quite underwhelming. Not to mention that even at the moment the company commands an overly-inflated market cap of $42.8 million. At the same time the latest financial report revealed that as of June 30 THCZ had:
• $95.6 thousand cash
• $1 million total current assets
• $1.53 million total current liabilities
• $798 thousand annual revenue
• $408 thousand annual net loss
Nearly the entire amount of the reported liabilities consisted of convertible notes payable. Even though THCZ were able to retire close to $200 thousand of that amount before it could be tuned into shares the remaining debt is still significant. Around 78 million shares were printed through conversions in the first half of the year.
Investors have also been waiting for the audited financials of the company to be released. Initially the audit process was expected to be completed in the summer but that projection appears to have been too optimistic. The CEO hoped that the financials will be ready before the shareholder meeting but that didn’t happen as well.
THCZ appears to be moving in the right direction. Having an audited financials and subsequently uplisting to the OTCQB market, which is the company’s goal, will further improve their credibility. Still, doing your own due diligence and taking into account the various risks should precede any trades involving the stock.
