After a whole week of losses, Jammin Java Corp. (OTC:JAMN
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) got the climb again. Yesterday, the stock soared 7.41%, while
trading over 203 thousand shares on the market.
The most reasonable explanation on the gain appears to be the last news by Jammin. It came up yesterday morning when the company reported new distribution agreements that will expand the brands' availability on the East Coast of the US and in Hawaii.
Unlike its previous positive announcements, the latest one got JAMN back on track, though it is not certain how long the up move will resist.
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. Last May, the stock price increased by $5.00 per share, however, since then it has reached $0.30.
As of October 31, 2011 the company's cash and cash equivalents have improved, though its net loss jumped up as compared to the previous period. At the same time, the accumulated deficit exceeded $2 million.
The company's financial report has been prepared by management assuming that Jammin will be able to continue as a going concern and realize its assets and discharge its liabilities in the normal course of business. However, certain conditions raise substantial doubt about the company's future existence.
Among these are the history of losses and huge deficit that make Jammin dependent on its ability to complete equity financings or generate profitable operations.
The company anticipates using the funds received from Straight Path to meet its capital needs for the remainder of fiscal 2012. However, the team claim that they may need additional capital by selling debt or equity securities. If accomplished, this may result in dilution to the company's shareholders and could have an adverse effect on its business.