American Green, Inc. (OTCMKTS:ERBB) Attempts Recovery
After a two-week stint pressed American Green, Inc. (OTCMKTS:ERBB) near the company’s six-month low, the stock finally reversed and started to recover. Yesterday’s 7.8% green close brought ERBB a good 35% up from its last bottom and just above its 50-day MA. The company logged its third largest share volume for the last month, at 31 million shares traded.
The company is still keeping a very low profile on the press release front, with a single announcement on the first day of this month. Compared to five releases delivered at an even pace over September, one would think that ERBB is either very busy getting its ZaZZZ machines installed in various states across the U.S. as promised, or simply has nothing to report.
The company has been talking about dropping its ZaZZZ pot vending machines in multiple states for a long while. The first anticipated date was back in early June. The event and the planned livestream to go with it fell through. In late June ERBB announced it had ‘begun shipping the first of many machines nationwide’. This did not culminate in any news of new locations where ZaZZZ was installed. In early September ERBB announced, yet again, that the machine will be deployed in multiple dispensaries across multiple states. This time the promised deadline is the end of October, giving ERBB a little over a week to finally make good on its string of promises.
The company’s next quarterly is due in less than a month as well. It will cast some much-needed light on the toxic financing and dilution going on with the company’s share structure. For those wondering what this is about, ERBB‘s latest annual report lists the issuing of 1.26 billion new shares in the 12 months between June 2014 and June 2014. The thing is that the company still issues convertible debt at deep discounts from market prices over 2014. During the quarter ended June ERBB issued convertibles for a total of $1 million. Those notes can be turned into common stock at 50% of the lowest closing bid price 12 months before the date of conversion.
