Todor Pichurov

American Green Inc (OTCMKTS:ERBB) Turns Red

by Todor Pichurov March 9, 2016

For a couple of weeks it seemed as though American Green Inc (OTCMKTS:ERBB, ERBB message board) had caught a bit of a break as the price went up 70% over a few sessions. Yesterday ERBB made a big step down, closing 9% in the red, at $0.002 per share.

Yesterday the company put up a new press release, informing that ERBB chose an entity called CR Commercial Contractors to build a “state of the art” pot cultivation facility for one of ERBB's clients. Nobody would ever doubt ERBB is going for “state of the art”, especially after the ZaZZZ machine – the bleeding edge marijuana vending machine project that fizzled without generating any significant revenues after nearly two years of development and millions in investment costs.

The PR did nothing to push ERBB further up the charts, save for a minor bump at the opening bell. It's understandable that investors are having a hard time getting excited about ERBB, given the company's track record of missed deadlines and empty promises, even if those happened under the management of a man who is no longer working for the company – one Mr. Stephen Shearin.

Here is what ERBB's latest public quarterly report for the three months ended December 2015 looks like:

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

Those figures are the least investors have to worry about. ERBB's chief way of securing new funds is far more troublesome. The company keeps issuing convertible notes that can be turned into shares at a 50% discount from the lowest closing bid price 12 months prior to conversion. This virtually ensures that no matter how low ERBB might skid, noteholders are almost guaranteed to be selling their shares at a hefty profit. Over the three months ended December ERBB issued another $370 thousand in such convertibles, adding to the existing pile of debt.

Comments 3

1. Guest
March 17, 2016, 09:41AM

Quotes Todor wrights this for free, cant you tell!

2. Guest
March 16, 2016, 03:50PM

Quotes Great work. Thank you.Cant wait for the vending machine to re re reinvented.

3. Guest
March 09, 2016, 10:27PM


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