Enertopia Corp. (OTCMKTS:ENRT)’s Mistery Friday Run
Enertopia Corp. (OTCMKTS:ENRT) has been climbing the charts since the beginning of the year, when the company stock was traded below 10 cents per share. Lately, it has gone through a tough period, but somehow managed to switch direction before the weekend.
On Friday, ENRT gapped down, but quickly began to move in a northbound direction for no apparent reason and the company closed the session with a 40% increase in price at $0.632 on average volume, generating $971 thousand in trade value.
With the latest press release from the company dating back to March 26 announcing that the President of Cannabis Science, Inc. (OTCMKTS:CBIS), Dr. Robert Melamede, Ph.D. has joined ENRT‘s Advisory Board, which didn’t seem to cause an uplift.
Furthermore, fact that the company stock fell 27% the next day on a $1.3 million dollar volume makes us question the possibility that this was the reason for the green final session of the week and we looked at other places.
In the end, the most viable version was that ENRT had been frequently listed in Techsonian’s watch lists (the latest was on Martch 28) along other companies in the medical marijuana sector, like Growlife, Inc. (OTCBB:PHOT) and mCig, Inc. (OTCBB:MCIG) and has reached a low from which it has recovered.
The current market cap of ERNT, however, seems a bit steep (judging from a book-value point-of-view) even if they complete the $1 million private placement financing deal. You can check out the numbers of prime interest from their quarterly report covering the period ended November 30, 2013 below.
- cash: $89 thousand
- current assets: $165 thousand
- current liabilities: $564 thousand
- revenues: $0
- net loss: $149 thousand
And yet, the company stock managed to reach the $1 per share mark earlier this month. The reason for this interest in ENRT might be the fact that it is one of the few Canadian pot companies whose stock is traded in the OTC markets, but only time will tell if they will be able to make it to profitability in their venture.
Until that time comes, be sure to do a lot of due diligence and weigh out the risks before making an investment decision.
