Vapor Hub International Inc.(OTCMKTS:VHUB) Gains Momentum
Yesterday’s session turned out to be good news for Vapor Hub International Inc.(OTCMKTS:VHUB) shareholders for the fourth day straight. The company booked 12% in the green, which despite being marginally lower than yesterday’s 14%, actually represented over 1.2 million shares changing hands – more than any other day since the April 10 crash.
We remind you that on the mentioned date, the marijuana sector experienced a massive depression, following the shock suspension of Growlife Inc. (OTCMKTS:PHOT). VHUB wasn’t spared in what ensued, despite some people arguing that they are no longer a “proper” pot stock.
The company’s latest annual report may have had something to do with the April 16 crash. However, the information contained in said report doesn’t reflect the current financials of VHUB. In reality the figures were for the entity before the merger with Vapor California. An 8-K was filed on March 19, containing numbers that, although skimpy, suit better the company’s current situation:
- $34,000 in Cash
- $99,000 in Current Assets
- $46,000 in Current Liabilities
What actually reinvigorated VHUB in the past few days was a press release on April 22, stating that there was an increase of interest in the company’s AR Mod. VHUB decided to partner with a local company in order to manufacture more units. They also went on to say that a shipment of 2,500 would be received in the next 6 weeks, with expectations for 10,000 more to follow soon.
Investors jumped on the announcement, as expected, and the upward momentum continues to this day, although no financial details about the supposed orders were made public. The only other relevant news is that a tranche of $200,000 from the previously disclosed financing deal, surrounding the merger, was now closed. One more tranche of $175,000 remains to be paid somewhere in the next 3 weeks. The financier can convert into common shares at a 10% discount from the market value of VHUB stock.
Despite the positive momentum, though, investors should be wary, as the ongoing optimism is mainly due to the April 22 release. When hype comes into play, share prices have proved fickle in the past, resulting in investment losses among many company supporters. Don’t skip the due diligence and do your own research, unless prepared to absorb damage.
