Borislav Tonev

Agritek Hldgs Inc (OTCMKTS:AGTK) is Still Active

by Borislav Tonev March 1, 2016

Agritek Hldgs Inc (OTCMKTS:AGTK, AGTK message board) has issued a couple of press releases recently. On February 5, the management team said that the first manufacturing purchase order for the company's brand new flavored capsules has been fulfilled, and nine days later, they announced that AGTK has sold some agricultural equipment. Basically, the press releases tell us that AGTK is generating revenue again and B. Michel Friedman, the company's CEO promises that things will really start to take off in the near future.

Let's hope that his current promises hold more water than the ones made a couple of years ago when the company was in the business of providing credit card payment options to medical marijuana users. Back then, Mr. Friedman was also making some bold claims, but at its peak, the company generated about $144 thousand in 2013 revenues which, you have to agree, is somewhat modest.

People reckon, however, that this time, Mr. Friedman is onto something. The ticker has been actively traded for the last few weeks and it has managed to run from the lower end of the double zero ranges all the way to more than a penny at the end of last week. It did experience a rather steep correction yesterday when it lost about a fifth of its value, but the dollar volume of nearly $130 thousand suggests that people are definitely interested.

They seem to be forgetting a few things, though. They are ignoring the fact, for example, that AGTK is delinquent in its filings. The most recent report contains the results for the second quarter of last year and it looks like this:

  • cash: $2 thousand
  • current assets: $640 thousand
  • current liabilities: $1.5 million
  • NO revenue
  • quarterly net loss: $845 thousand

The report, as old as it is, also reveals that AGTK has had some serious problems with toxic debt. A grand total of 52 million shares saw the light of day at a discount to the market price as a conversion of notes.

The effects on the stock are pretty evident and in January, Mr. Friedman decided to do something about it. Some debt was satisfied with transferring of interest in AGTK's Nevada property and a few notes were bought out by other parties. The company bragged about more than $850 thousand worth of toxic debt being eliminated from the balance sheet, but a closer look at the 8-K's will show you that there are still some notes convertible at a 42% discount.

The future reports should tell us how many of them are outstanding and the filings should also inform us what happened to the Mr. Friedman-approved reverse split. Hopefully, they will come out sooner rather than later.

Comments 3

1. Guest
March 01, 2016, 02:02PM

Quotes
SOON WE SEE A 0,0171
STRONG BUY

2. Guest
March 01, 2016, 10:34AM

Quotes

Agritek Holdings, Inc. Completes Elimination of $850,000 of Toxic Debt From Former Lenders

3. Guest
March 01, 2016, 10:18AM

Quotes AGTK: Strong Buy


Pivot Point Resistance
0.0089 0.0171

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