Jammin Java Corp. (OTC:JAMN)
has been moving down for a couple of days. The fall started on Wednesday and yesterday
the stock lost the next 2.94% on an increasing traded volume.
What is interesting here is the fact that the price fall started on the day when Jammin released some positive news on its business. On Nov 30, the company reported that Marley Coffee has expanded distribution in Northern California with two leading retailers, starting this month.
The news should have inspired investors, though instead of cutting off the loss JAMN stock price kept falling down. Whether the downtrend will continue today should be seen shortly.
Jammin Java Corp., a development-stage company, focuses on providing premium roasted coffee on a wholesale level to the service, hospitality, office coffee service, and big box store market in the US. In mid-May, the stock price jumped over $5.00 per share, however, since then it has reached $0.300.
According to the 10-Q of Jammin, as of July 31 this year the company had more assets than liabilities in its balance, though its accumulated deficit exceeded $1 million. JAMN managed to generate some revenue, however, its expenses and net loss substantially increased. Besides, the financial report contains numerous risk factors that can influence the business of JAMN.
Despite these facts, Jammin anticipates using the funds received from Straight Path to meet its capital needs for the remainder of fiscal 2012. However, in future, JAMN may be required to seek additional capital by selling debt or equity securities, which may result in dilution to their shareholders.