Anastas Gegov

American Green Inc (OTCMKTS:ERBB) Drops On High Volume

by Anastas Gegov May 9, 2016

What does failure mean? Taking a look at American Green Inc (OTCMKTS:ERBB, ERBB message board) might give you a pretty good example of failure. The company has a history of not delivering on its promises and forecasts for years now, despite all the touting.

 

We heard so much about the company’s ZaZZZ machine over the past year that it began to hurt. In the end, everything turned out to be a colossal failure and ERBB hasn’t been talking about the ZaZZZ vending machine for more than five months now. Meanwhile, its financial statement speaks a lot for itself.

 

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

 

Believe it or not, these aren’t the worst things that you can find in ERBB’s quarterly report for the fourth quarter of last year. By December 13, 2015 he company’s outstanding share count was sitting at a whopping 5.5 BILLION as a result from the toxic way in which ERBB secures its financing.

 

Showing absolutely no regard for shareholder value the company has been pumping out convertible notes that can be turned into common shares of stock at a hefty 50% discount from the lowest closing price in the 12 months prior to conversion.

 

We see that this has driven some investors away, but ERBB still records some decent volumes from time to time. In Friday’s session we saw the ticker lose 13.33% of its value and drop to $0.0013, while a total of 213.79 million shares changed their owners and generated $276 thousand in daily dollar volume.

 

Considering all this we would advise you to do your due diligence and weigh out all the risks before putting any money on the line.

Comments 2

1. Guest
May 11, 2016, 04:17PM

Quotes A-M-E-N, and A-M-E-N!!!!

2. Guest
May 10, 2016, 10:38AM

Quotes For all investors who have lost money on this stock or any other in the sector, you have to realize that Republicans in Congress are blocking legislation that would legalize cannabis thereby making it impossible for American Green to borrow from the banks to expand their business. Instead of financing the way most small businesses do, they have to issue convertible stocks which is toxic for shareholders, so the only way to stop it is to vote out every Republican in office this November so the Democrats can pass Marijuana legislation that allows banks to do business with American Green.

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