Todor Pichurov

American Green Inc (OTCMKTS:ERBB) Gasps for Air

by Todor Pichurov February 26, 2016

Yesterday American Green Inc (OTCMKTS:ERBB, ERBB message board) made another nice little push up the charts. The ticker shifted 75 million shares and ended up 18% in the green, propelled by a news release. After the sizable push up the chart, ERBB closed at $0.0019 per share.

ERBB informed investors that “it has created a new addition” to its growing cannabis plan of operations. What stage of development this “addition” is at is not too clear but the plan is to have a thing called The American Green Xpress, which will deliver cannabis to patients in Arizona. There are also plans for a mobile app called MJ Freeway. If anything, ERBB's corporate lingo has not changed much since the Shearin days, as the PR once again speaks of exceeding state requirements and delivering a great product. If investors had not been told how ERBB worked to exceed requirements for the ZaZZZ machine for over a year, only to have the project turn out to be a complete dud, the news would probably sound a lot more convincing.

Shearin is now out of ERBB, but what remains is the crushing, terrifying pile of convertible debt. As a matter of fact that pile kept growing at an alarming pace into ERBB's last reported quarter with another $370 thousand in new debt, converting at the usual 50% discount from the lowest closing bid price gong 12 months back from the point of conversion.

It's exactly this sort of financing, as well as months of empty promises in 2014 and a good part of 2015, that got ERBB where it is right now – barely clinging onto the bottom edge of double zeroes. The company is doing its best to reassure investors that it's turning things around and trying to break from its old ways under Shearin's management but the accumulation of debt under the same toxic conditions seems to indicate otherwise.

Here is a brief summary of ERBB's latest quarterly for the three months ended Dec 2015:

  • $4 thousand in cash
  • $7.9 million in current liabilities
  • $108 thousand in quarterly revenues
  • $732 thousand in quarterly net loss

Even if we forget about the endlessly growing pile of toxic debt, there's shrinking revenues QoQ, there's hardly any cash on hand to speak of and there is a 5.5 billion in outstanding common shares.

Comments 7

1. Guest
March 01, 2016, 05:54AM

Quotes Todor Pichurov Gasps for Air

2. Guest
February 28, 2016, 08:56AM

Quotes Frodo doesn't know how to write/speak in proper English. Also, the brief summary provided only shows one side of the equation. Thanks for your unsupported and biased position Frodo.

3. Guest
February 26, 2016, 06:07PM

Quotes You havent owned ERBB as long as I have-.0012.....

4. Guest
February 26, 2016, 05:17PM

Quotes
Target of.25

5. Guest
February 26, 2016, 03:29PM

Quotes I'm sure the price of ERBB will go up to .10 and the next month's

6. Guest
February 26, 2016, 10:10AM

Quotes I am sure this is a small Burp, the price of ERBB will go back down to .0012 by next week.

7. Guest
February 26, 2016, 09:07AM

Quotes Todor thrives on being NEGATIVE....

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