Gediminas Jasionis

Hop-On Inc (PINK:HPNN) Stock Soars As They Offer Free Cigarettes

by Gediminas Jasionis April 8, 2010
Hop-On Inc (PINK:HPNN, HPNN message board) stock hopped 150% within only half a trading day as the company's Electric Cigarette became available for purchase online.

The product is marketed and currently given away for free through USAcig website. Of course the clients have to leave their credit card information and pay the delivery costs. The website based ordering system was only introduced last week. In their PR Hop-On says they received a few hundreds of orders for The Electric Cigarette shortly after the offering was made.

Electronic_cigarette.jpgThe production of the electronic cigarettes is officially not the main business of Hop-On. The product was developed in conjunction with USAcig, Inc. In January 2010, the company gained full bureaucratic freedom to distribute these cigarettes in the US, when the FDA was proven to falsely prohibit the sales.

From the investor's perspective HPNN remains a speculative play as they don't file financial information with the SEC. From what can be seen the company from the unaudited third quarter 2009 results:
  • No cash;
  • No revenues;
  • Nearly $60 thousand average quarterly loss from operations;
  • $10 million in liabilities;
  • All expenses covered by issuing stock;
  • Nearly 59% stock dilution in Sep 2009-Jan 2010 period alone.

There were no funding deals announced and the company kept selling stock without noticing the shareholders. The stock has lost 83% of value since reaching $0.011 level in a short rally when the FDA distribution permission conflict was resolved.

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