On Friday Rocky Mountain High Brands Inc (OTCMKTS:RMHB, RMHB message board) made a double-digit push up the charts and settled 14% up, at $0.034 per share by the closing bell. This sent RMHB to its highest close for the past month and a a half. What is the reason for this excitement, though?
The company has certainly been busy dishing out press releases in rapid succession, with no less than six separate announcements hitting the wire over the last three weeks alone. The two that could have potentially triggered this small price rally are the ones that came up last week, announcing RMHB's participation in a food expo and the company's sponsorship of a stage at a musical festival. This is not exactly the type of news that would inspire investors to buy a boatload of stock, so the recent swell in both share volume and price has to be triggered by something else.
Sadly, the trigger is nowhere to be seen. RMHB last put up a filing exactly two weeks ago, publishing its quarterly report for the three months ended December 2015. Here is a brief summary of the report's balance sheet:
$100 thousand in cash
$2 million in current liabilities
$313 thousand in quarterly sales
$385 thousand in quarterly loss from operations
The company ended up with a bottom line of $2.3 million in net income, but that is due to $2.7 million being written off as gain on change of fair value of derivative liabilities, so it's not exactly derived from sales and operations. The report itself had very little effect on the share price on the day it came out and soon after, with RMHB actually slipping a couple of days after it.
The slip may have to do with the fact that RMHB's expenses increased significantly QoQ, from $379 thousand for the three months ended September, to $526 thousand in the last calendar quarter. There's also the usual issues with convertible debt present in the reports of most OTC companies.
In the second half of calendar 2015, RMHB issued 68 million shares at $0.001, upon the conversion of just $104 thousand worth of debt.
|
Thread abonnieren
