Alternaturals, Inc. (OTCMKTS:ANAS) Surges on PR
Yesterday yet another new pot stock surged dramatically on the OTC Markets. Alternaturals, Inc. (OTCMKTS:ANAS) closed 89% up, propped by an optimistic press release. Over 250 million shares changed hands, sending ANAS to a close of $0.005 per share.
A bit of history first. Until recently ANAS was trading as Premier Mortgage Resources, Inc., under the PMRS ticker. Back in 2013 the company acquired a DBA Alternaturals.com. After changing its name and ticker the company is now shifting its operations to the sale of ‘alternative healthcare products’.
Of course, those products include ‘hemp and cannabis’ related ones. If it weren’t for those two words and the press releases announcing the new business model, the company’s share price may not have rocketed the way it did back in March. In our previous article that came before the name and ticker change we examined the company’s financials or rather the lack thereof. As of December 2013 there were no revenues or cash on the books.
In mid-May ANAS filed its Q1 report and it contains the following:
- $1 thousand in cash
- $170 thousand in current liabilities
- $8 thousand in quarterly revenues
- $1 thousand in net income
Those deflating figures are accompanied by the disclosure that the acquisition of DBA Alternaturals does not yet carry tangible value because trademarks and patents are not cleared yet. ANAS may still operate out of its $250-per-month office but it dreams big, it seems.
Yesterday the company announced it had started shipping products, including its ‘Five Hour High‘ MMJ drink, to third party retail locations. The announcement is made well in advance of the date when the product will supposedly hit the shelves of Colorado dispensaries. There are hardly any details provided but CEO Mr. Gyamfi promised investors that there are many exciting deals worked out and more ‘exciting’ PR will come in the weeks ahead. ANAS further announced a plan for a share buyback, starting next week. With 2.3 billion outstanding shares, $1 thousand in cash and convertibles for another $20 thousand issued in January, ANAS doesn’t exactly look like it has the means to execute a meaningful buyback at the moment.
Part of yesterday’s heavy volume is possibly attributable to infamous Twitter user Wolf of Weed Street, even though he came up with just two tweets mentioning ANAS in passing. Considering how well stocks he previously highlighted panned out, including Fusion Pharm, Inc. (OTCMKTS:FSPM) who were suspended within a day of his mention, traders may want to be extra careful.
In the wake of the recent suspension of five pot-sector companies, the SEC published yet another investor alert related to marijuana companies and the dangers associated with them, highlighting red flags such as exaggerated press releases. We can only echo the Commission’s sound advice and encourage our readers to do their own due diligence and be thorough with it, especially when dealing with volatile sub-pennies that promise to make it big in the booming sector.