VAPE HOLDINGS INC. (OTCMKTS:VAPE) Continues Its Downfall
VAPE HOLDINGS INC. (OTCMKTS:VAPE) tried to make a recovery four days ago, but now it is back in the red. Yesterday’s session cost the company another sizable chunk of its market value, and as a result it is currently traded at $2.13.
A loss of 9.75% in a single session is not all that unusual when it comes to marijuana stocks, given the market’s current volatility and its susceptibility to hype. Anything, from a sudden lack of interest, to bad news on the latest legalization developments, to the SEC suspending a competitor in the branch, can send a marijuana ticker to the bottom of the charts at any time.
VAPE seems unique in that regard – it’s been falling for nearly three months regardless of current developments. Why? Because the company seems to have scant little keeping it afloat. VAPE‘s most recent financial report contained the following figures:
- Cash – $598 thousand
- Total current liabilities – $556 thousand
- Revenue – $30 thousand
- Net cash used in operating activities – $252 thousand
Said report stated that the company had accumulated a $30 million loss on settlement of convertible debt in that same quarter, and that debt has been cleared now. However, the very fact that VAPE had to deal with such an issue in the first place does not speak well for the company’s management at all.
The topic of VAPE‘s management reveals another red flag. The fact that Mr. Kyle Tracey, Growlife Inc. (OTCMKTS:PHOT)’s acting president, is currently VAPE‘s CEO, CFO and one of the two members of VAPE‘s board of directors, can also be considered a major point of controversy for VAPE.
Currently, investors are calling the company’s most recent jump a “dead cat bounce after a big drop”. Under these circumstances, is it any wonder that VAPE has been in decline for some time now, and is still painting the charts red?
Another controversial company that fell yesterday is Creative Edge Nutrition Inc. (OTCMKTS:FITX), who lost 9.64% of its market value to what stock journalists are now calling a “stupid prank”.
