Anastas Gegov

Medical Cannabis Payment Solutions (OTCMKTS:REFG) Crashes Horribly

by Anastas Gegov June 26, 2015

The start of the year wasn’t very pleasant for the stock of Medical Cannabis Payment Solutions (OTCMKTS:REFG, REFG message board), but the ticker did manage to gain some ground in April. Unfortunately, REFG has been struggling ever since and the reasons for this are plentiful.

 

First of all, the company has been in business for quite some time now and it has failed to deliver. Anyone who has been following REFG knows that and it’s pretty clear when you look at the numbers contained in the company’s balance sheet. Here is just an example from the report covering the period ended March 31.

 

  • cash: $170 thousand
  • current assets: $170 thousand
  • current liabilities: $149 thousand
  • quarterly revenues: ZERO
  • quarterly net loss: $115 thousand

 

People dealing with OTC stocks are not easily shocked from bad financials, but REFG is a champion in the long-run. As we wrote in the beginning of this year, the company sold 20 million shares at a price of $0.025 in the third quarter of 2014 in order to raise $500 thousand in capital.

 

Most of that capital has since been spent and we see no progress. In fact, the company is going backwards. REFG recorded a miniscule $5000 in sales in the first nine months of 2014. As you can see from the numbers above, the company has lost even that laughable revenues so far this year.

 

Furthermore, REFG is no stranger to pumps. In fact, even the latest spike of attention that the ticker saw was due to a $25 thousand promotion carried out by The Next Big Trade. Even though the company stock traded in 15 times its average 30 day volume we saw the ticker lose 23.32%, going down for a close at $0.0559.

 

Today we see REFG slide further down the charts. There is no argument that this is one of the riskiest stocks on the OTC markets. Still, if you have any ideas of making a play you should be sure to do your own due diligence and weigh out the risks before putting any money on the line.

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