Vega Biofuels, Inc. (OTCMKTS:VGPR) Awaits New PR to Boost Price Growth
Vega Promotional Systems, Inc. (OTCMKTS:VGPR), switched to Vega Biofuels, Inc., is now facing the challenge of surviving with a price over one cent, instead of sinking back to double-zero positions, as many other newcomer marijuana stocks did. VGPR slid down slightly by 7% to $0.0119, on dollar volumes above $755,000. The past week saw a little more active buying, but for VGPR and the MMJ sector in general, trading volumes remain subdued compared to earlier months. 
VGPR may slack off, as the best days of its climb coincided with the Denver cannabis expo. Now, the company is facing a week of more tension, as there are expectations that suspended trading is still a tool that the SEC is ready to use against MMJ companies that show a disproportionate rise in price.
Also, the Marijuana index shows a generally subdued mood, losing another 5% on Thursday, headed for a rather pessimistic week, as most tickers ended the day in the red. Given that VGPR is in a shaky position, the general bad mood may cut the rise and not allow the ticker to move into a range of a few pennies. VGPR will have to prove that its agricultural additive products, biochar and biocoal will be in demand by the cannabis sector. To achieve its goals, the pink sheet company was equipped with the following financials:
- current assets: $18 thousand in cash
- current liabilities: $134 thousand
- no revenue since inception
- yearly net loss: $120 thousand
With that in mind, VGPR showed some rather ambitious developments. During the Denver Expo, the company announced the acquisition of the Legal Hemp and Marijuana Division of Biochar Now, LLC. Also, VGPR presented a new subsidiary, Vega Biochar. We only have to wait and see if those developments have a material effect for the company, and in the shorter term, if they are enough to keep investors interested, as VGPR drifts off without fresh PR or a new email promotion.
Investors’ forums focus much on the events around the weekend, and especially on expectations of new PR. The news is expected on Friday or Monday, with the idea that this may lead to buying around the holidays. While this may boost VGPR to the multiple pennies position, there is no guarantee, and such expectations are not unusual for most newly active marijuana stocks.
Currently, VGPR resembles the climb of Latteno Food, Corp. (OTCMKTS:LATF), which sprung up from very low prices and settled itself as a promising MMJ company. But the short rising period for LATF was followed by a long slide as the sector lost its bounce. Now, LATF continues to deflate each day, settling at $0.0038.
United Treatment Centers, Inc. (OTCMKTS:UTRM) also held much promise for an easy rise to a price of several pennies. Unfortunately, UTRM went on to follow the scenario of LATF, and has been sliding for more than a month. Despite the lower prices, UTRM has still not become a bargain buy, and continues sinking deeper into the double-zero zone.
If you like VGPR for its novel business model, be aware that the stock price movements rely too far on publicity. Without that engine, it is best to be prepared for the stock price to become depressed again.
