Todor Pichurov

American Green, Inc. (OTCMKTS:ERBB) Can't Find a Bottom

by Todor Pichurov April 22, 2015

One year ago, American Green, Inc. (OTCMKTS:ERBB, ERBB message board) was trading at its current 52-week highs, at $0.06 per share. Yesterday the stock sank another 8%, to hit yet another 52-week low, closing at $0.0065. Within a year of almost constant decline, the stock went down 90%.

What is going on with ERBB at the moment? Hard to tell, really. The last press release came out three weeks ago and was of the fluff variety, announcing yet another collaboration, this time with Endexx Corp. (OTCMKTS:EDXC) and spoke in vague terms about plans for co-developing a platform that will help standardization in the pot industry.

The real question is, what is going on with the ZaZZZ machines. Frankly, the ZaZZZ was the reason why ERBB managed to reach those $0.06 a year ago. The ZaZZZ and the loads of empty promises made by company management back in the spring of 2014. People who bought as high as $0.10 per share in late March 2014 will remember a certain CNN Money piece quoting president Stephen Shearin's expectations to have 1,000 ZaZZZ units operating in US dispensaries by Christmas 2014.

Investors will also remember how technology first got in the way before the original ZaZZZ launch date in June 2014. This was the first in a long string of excuses, promises of refining the machine and its software and more missed launch deadlines.

The ZaZZZ finally launched in early February 2015. Since the launch, the grand total of installed ZaZZZ machines still has not reached 20. Allegedly, 18 machines were shipped out, even though the location of only a dozen is firmly known. Out of this dozen, only TWO show up as “online”, i.e. fully connected to the Internet and having their full catalog imagery loaded. There is no information on whether the units that are not “online” on the ZaZZZ Network site are actually fully operational and are used on a regular basis.

It has been almost three full months since the ZaZZZ launch, and in those months ERBB managed to post a quarterly report that showed $243 thousand in revenues but also $2.28 million in net loss. Within almost three full months, there has been no information about any new orders outside of the 18 machines that began shipping out of ERBB's warehouse back in December 2014.

This is all without even mentioning the fact that by now ERBB is likely very close to maxing out its authorized shares and might need to do something about it because it still has millions of dollars of convertible debt, which will need authorized share breathing space to satisfy if the holders decide to convert. There is little reason for them not to, considering all the convertible debt the company has converts at a 50% discount from the lowest closing bid price 12 months back. With ERBB scraping new lows, this means noteholders can now convert at a delicious $0.00325 per share.

Comments 4

1. Guest
April 23, 2015, 02:04PM

Quotes Todo-Your Mom did beat you with a broom and told you that you will never amount to anything, didnt she. I can tell by your last "violent"statement!GET YOUR ASH IN GEAR AND GET THOSE POT LAWS CHANGED OR YOU WILL BE A MOUSE YOUR WHOLE LIFE!

2. Guest
April 23, 2015, 11:38AM

Quotes Correction, 18 would be a good start but the real number of Zazzz machines selling restricted products is exactly ZERO! The one machine selling products does not sell anything that is age restricted and the other machine that is 'online' doesn't work.

3. Guest
April 22, 2015, 01:59PM

Quotes Stephen Shearin was obviously overly-optimistic about the number of Zazzz machines projected to be online, however, 18 is a good start. Dispensaries are probably apprehensive about installing them until more data comes to light about their capability for revenue. I see a similarity in the U.S. where states are waiting for and analyzing statistics out of Colorado, Washington state, Oregon, and Alaska before legalizing the sweet green weed in their states. I know if I was an owner of a marijuana dispensary or governor of a state, I would wait for more data too before taking the plunge, especially in a country where ideology has trumped science on this topic for decades.

4. Guest
April 22, 2015, 09:13AM

Quotes Todo, you are going over"OLD GROUND". iTS THE LAWS that need to change to make this stock go up. Work on changing them if you want do something constructive. Did your Mama use to beat you with the broom and tell you that you will never amount to anything in your life?

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