United Treatment Centers Inc (OTCMKTS:UTRM) Crashes After Site Launch

The people at United Treatment Centers Inc (OTCMKTS:UTRM) have really been hard at work over the last few weeks. On April 9, they said that they have completed a round of financing and although they failed to mention how much money they have raised, they did their best to assure investors that the fresh capital will be put to good use.

April 20 was set as the new launch date (the first one was missed) for the PotNetwork website and Chris Seminatore (the company CEO) told investors that there’s a lot to look forward to. UTRM didn’t issue any press releases over the next few days, but they tried their best to keep investors updated through their Facebook page. Some photos were posted and a letter to the shareholders was issued on Thursday in which Mr. Seminatore once again explained that everything is going according to plan.

The stock performance wasn’t exactly impressive, but on the bright side, serious drops were avoided. Investors were eagerly awaiting the launch of what was advertised as “the CNN of the marijuana industry” and were hoping that this time, UTRM will meet their deadlines. They did.

On Sunday, PotNetwork woke up with a slightly re-worked design and, more importantly, with some video news covering everything from the increasing number of dispensaries that are opening their doors throughout the country to the performance displayed by Advanced Cannabis Solutions f/k/a Promap Corp (OTCMKTS:CANN). Naturally enough, about an hour before yesterday’s opening bell, UTRM issued a press release which was garnished with plenty of forward-looking statements about the potential of the website and the products it will offer. Everyone was expecting to see the stock climb the charts, but surprisingly or not, it didn’t.

In fact, UTRM registered one of its most horrific sessions to date. More than 580 million shares changed hands resulting in a dollar volume of around $4.8 million. The ticker opened the day at $0.0116 (8% above Thursday’s value), but started sliding immediately. Six and a half hours later, it was sitting at just $0.0062 which means a hefty 41% in daily losses. Indeed, a devastating drop and it might just turn out to be a turning point for UTRM.

There are still a lot of investors around message boards that seem to have a positive attitude towards the company, but there’s also plenty of extremely disappointed people. Concerns are raised about the fact that PotNetwork’s studio looks remarkably similar to the one seen on this picture, about the advertising system which appears to be non-operational at the moment as well as some other problems.

There’s no getting away from the fact that UTRM were a bit too enthusiastic for what (at the moment) is a news website with some videos on it. Investors were, apparently, expecting much more and are now having second thoughts.

Plenty of work needs to be done before UTRM can safely compare their website to serious media outlets and right now, there can be no guarantees around their success. That’s why, considering the risks carefully and doing a lot of due diligence before putting any money on the line is absolutely essential.

UTRM wasn’t the only active stock on the OTC Markets yesterday. At $6.2 million, Tranzbyte Corp (OTCMKTS:ERBB)’s dollar volume was even more impressive and, as an added bonus, it managed to remain relatively stable losing less than 1% of its value. Cannabusiness Group (OTCMKTS:CBGI), on the other hand, shifted around $450 thousand worth of shares while wiping out a fifth of its market cap.