Tranzbyte Corp. (OTCMKTS:ERBB) Bounces On PR

Yesterday Tranzbyte Corp. (OTCMKTS:ERBB) managed to jump another 10.22%, fueled by the news that the company is in negotiations to enter into another strategic partnership.

Investors eagerly jumped at the company’s stock once they heard word of the preliminary agreement ERBB has with Futureworld Energy Inc. (OTCMKTS:FWDG). Apparently, both companies have big plans – the press release that announced the agreement stated that the companies are planning for the “distribution of its ZaZZZ robotic dispensaries nationwide and beyond”.

This statement can easily be interpreted as a sign that ERBB‘s ultimate goal is nationwide, and even worldwide, distribution of the ZAZZZ machine. Presently, this goal appears a bit out of reach, especially if you consider the fact that ERBB has installed JUST ONE operating ZAZZZ machine unit to date.

In a press release dated May 21, ERBB announced that it will be installing machines in four dispensaries in three different states before May 28, but is yet to deliver on that promise. There has already been one delay, and only time will tell if the second unveiling will happen on the announced date.

Still, many marijuana stock enthusiasts were hyped about the possibility of a strategic partnership between ERBB and FWDG. Which is odd, especially if you consider the fact that FWDG is just another dubious OTC penny stock. Just one look at it reveals that at the end of December, 2013 it had:

• Cash – $40 (NUMBER NOT IN THOSUANDS)
• NO CURRENT ASSETS
• Total current liabilities – $1.3 MILLION
• NO REVENUES
• Net loss – $52 thousand

This is not a joke. It turns out that ERBB is currently actively engaged in a partnership negotiation with a company that literally had NO current assets just five months ago. It is unclear what a company with only FOURTY DOLLARS to its name can do for ERBB, but both ERBB and its supporters seemed well pleased with themselves at the end of yesterday’s session.

Which just goes to show that proper due diligence is absolutely necessary when dealing with marijuana penny stocks. Because, even if their press releases aren’t exaggerated or completely false, said PR rarely announces achievements that are not misleading or are actually relevant.