Tranzbyte Corp. (OTCMKTS:ERBB) Hits a Brand New High
Tranzbyte Corp. (OTCMKTS:ERBB) stock reached a high of $0.0393, driven up by its latest press release. Despite the numerous off-putting factors ERBB share prices jumped 15.59% yesterday, after its red session on Wednesday.
The company managed to break its descent yesterday, by announcing the signing of a formal agreement with Herbal Elements LLP, a legal Medical Marijuana Dispensary in Eagle-Vail, Colorado. As per the agreement, ERBB‘s new partner is to to assist the company in the final steps of the “machine roll-out” in the state of Colorado. The dispensary owner, a M-r. Greg Honan, is to work closely with ERBB and insure that the ZaZZZ machine is what customers expect and deserve.
The press release also announced that OneBode International, one of ERBB‘s wholly-owned subsidiaries, will give all its shareholders “a deep discount of 40% on its entire product line”. This is certainly good news for shareholders “looking for quality vitamins, minerals, enzymes and probiotics”, but not necessarily all that relevant to anyone else.
It is obvious why an overly optimistic press release on ERBB‘s latest partnership deal pushed the ticker upwards considerably. However a second glance at the press release reveals that the hopeful announcement contained no relevant information on the company’s plans for the future, or anything even remotely related to its current financial situation, or its present business plan.
The financial report ERBB filed yesterday also turned out to be something of a disappointment. It covered the period ended Dec. 31, 2013 and was unconvincing to say the least:
- Cash – $2 thousand
- Total current assets – $38 thousand
- Total current liabilities – $3.6 million
- Quarterly Revenues – $86 thousand
- Net loss – $323 thousand
While it is true that the company has managed to reduce its current liabilities by nearly a million dollars since it last filed a report, ERBB‘s net loss is still four times the amount of their revenues. This stale state of events is expected to change once the company’s ZaZZZ project reaches its marketing stage, but it is currently unclear when that might happen and precisely how much commercial success the cannabis vending machines will bring.
Most pot-stock companies weren’t as successful as ERBB yesterday. Medical Marijuana Inc. (OTCMKTS:MJNA) and Growlife Inc. (OTCBB:PHOT) finished in the red, both companies registering a fall of exactly 4.88% during the very same session.
