United Treatment Centers, Inc. (OTCMKTS:UTRM) Continues to Slide, Misses Launch Date
United Treatment centers, Inc. (OTCMKTS:UTRM) like so many other pennystocks were tempted to ditch their previous business, that managed to get their stock to rock-bottom at $0.0001, and try to ride the prevalent marijuana hype. The company did this through a reverse merger with PotNetwork420 announced on February 5. The response was immediate and in just a few sessions UTRM had returned to the double zero price ranges on nothing more than optimistic speculations.
The next move made by the new management team was to inform investors that 3 BILLION of the then outstanding 5.5 billion shares will be retired. In the world of pennystocks such a move is not very common and not surprisingly when on March 19 the process was completed it propelled the stock even hire. In just 4 sessions UTRM surged from $0.003 to more than $0.014.
The problem will all of the recent chart runs posted by newcomers to the marijuana industry is that hype can sustain their prices for only so long before reality settles in and since then UTRM has been correcting for four sessions in a row. On Friday it lost another 11% and dropped down to $0.007 per share. As a whole, after peaking at $0.0146 the ticker has slashed more than 50% off of its value.
Since the merger UTRM has described itself as “the CNN of the marijuana industry” but the much anticipated launch of their official website and studios that should have happened last Friday failed to materialize. There have been no updates for the cause of the delay leaving many investors speculating when an official explanation will be issued. Instead a day earlier, on Thursday, UTRM announced that they have signed an agreement with Alliance Insurance which will enable the company to offer different insurance products for marijuana-related businesses.
Although this venture has nothing to do with their main goal of producing media and web content geared towards the marijuana industry revenues are revenues and the company will desperately need some. On Saturday UTRM filed is annual report for 2013 and it showed:
- $7000 cash
- $21 400 total assets
- $780 thousand total liabilities
- $144 thousand sales
- $228 thousand net loss
The report covers the results prior to the recent shift in operations but it still revealed the poor financial state of the company. Not to mention that there still are a couple of promissory convertible notes that could once cause massive dilution of the common stock.
When contemplating an investment in any of the marijuana pot stocks be sure to carefully do your own due diligence, look at their financials and try to weigh in all the risks. Jumping hastily on hype alone is never a good decision.
Cannabusiness Group (OTCMKTS:CBGI) managed to post a truly remarkable run after it too joined the marijuana industry and run from double zero levels to more than 40 cents in just a month. Since then it has plummeted down by more than 50% dropping to $0.18 at the end of the week. Triton Distribution Systems, Inc. (OTCMKTS:TTDZ) is still moving up on speculations alone and it gained 31% closing the session at $0.021 per share.
