Georgi Kamburov

Refill Energy, Inc. (OTCMKTS:REFG) Crashes On Significant Volume

by Georgi Kamburov October 3, 2013
REFGchart.pngAfter losing 14% this Tuesday the stock of Refill Energy, Inc., d/b/a Medical Cannabis Payment Solutions, Inc. (OTCMKTS:REFG, REFG message board) got hit even harder during yesterday's session. When 1.1 million shares got dumped on the market the ticker found itself at $0.23 but after a mild climb at closing time was sitting at $0.28, or exactly 22.22% lower than the previous session.

After trying its luck in various industries ranging from exploring and acquiring oil and gas deposits in the US to the selling of fine art and sports memorabilia the current management of REFG decided that they are going to join the medical marijuana sector. But unlike all the other companies who already did the transition REFG has no intentions of distributing or growing the plant. Instead they offer two products - Sparks, a cloud-based VoIP system and Ghost, a mobile app platform.

The idea certainly has potential but for now it is overshadowed by all the red flags around the company. According to their financial report for the period ending June 30, REFG had:

  • $2900 cash and total current assets
  • $111 thousand total current liabilities
  • ZERO revenues
  • $56 thousand net loss

Not exactly confidence-boosting numbers especially when you add in the accumulated deficit of more than $28 million. Investors should also consider that there is a lot of room of dilution after the massive 1-for-1000 reverse split from last year. The number of outstanding shares sits at 75 million out of the 490 million authorized. And during the first quarter of the year the holders of a $10 thousand convertible note received 10 million shares for just $0.001 per share. The same people are the likely source of the shares that have been sold these past two days.

Considering investing in REFG is a risky bet. They haven't generated any revenue yet and have just announced the assembly of a BZNEchart.pngsales team. Be sure to do your own research before making any decisions.

The medical company Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) has also been losing value on significant sale of stock this week. They have fallen down from $0.8 to $0.56 in just four days. Andalay Solar, Inc., f/k/a Westinghouse Solar, Inc. (OTCMKTS:WEST) are in the same boat after dropping for a third consecutive day and losing another 22% yesterday.

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