Fastfunds Financial Corporation (OTCMKTS:FFFC) Soldiers on, New Agreement Announced
After hesitating a bit and logging two red session on Wednesday and Thursday, Fastfunds Financial Corporation (OTCMKTS:FFFC) managed to register an extremely positive end of the week and on Friday, it jumped up by 40% while shifting more than 416 million shares.
An eventful session, no doubt, but it seems that today’s trading might be even more interesting. Just twenty minutes after the opening bell, FFFC is already 22% above last week’s close. At the moment, the trading volume is nudging the 40 million shares mark while the trade value stands at around $177 thousand.
Unlike Well Power Inc (OTCMKTS:WPWR) (another explosive gainer from the start of today’s session), FFFC is not fueled by a paid pump, but it is propelled by something that could potentially be equally dangerous – hype. More specifically, the hype around the marijuana industry.
As we mentioned in our previous articles, FFFC was sitting idle until about two weeks ago when the management team decided to spice things up a bit by announcing their entrance into the cannabis sector. At first, there was not much in terms of details around the new business plan, but on February 4, they said that they have signed an agreement with Singlepoint Inc (OTCMKTS:SING) and that really gave volumes a boost.
Another press release hit the wire a few hours before the start of today’s session and it seems to be giving the stock another push. According to the announcement, FFFC have signed their second agreement in the marijuana sector. This time, their partner is a private entity that goes by the fetching name of Colorado Cannabis Business Solutions, Inc. (COCBS).
Apparently, COCBS was incorporated recently and it aims to provide Colorado-based marijuana dispensaries with some sort of business solutions. Quite what the business solutions are going to be remains unknown since COCBS don’t appear to have any sort of internet presence.
The press release does tell us, however, that FFFC, through their Cannabis Angel subsidiary, are going to receive equity ownership in the development stage private entity which is, apparently, a good enough reason for the investors to start buying.
In reality, however, we’re struggling to see how some shares from a newly-born cannabis enterprise can cover FFFC‘s current liabilities which, according to the latest 10-Q, amount to no less than $10 million.
The problem of dilution which we touched upon in some of our previous articles is also quite disturbing. As you probably know, FFFC increased the authorized capital twice over the last six months which means that the company is now allowed to issue up to 6 billion shares of common stock.
If they decide to take advantage of the increased number, their share structure might start to resemble the one of SurgLine International Inc (OTCMKTS:SGLN) – a Grey Market company with a skull and crossbones badge on their profile at the OTC Markets’ website.
In case you’re wondering, we chose SGLN as a comparison for a very good reason – Mr. Henry Fong, FFFC‘s CEO, also serves as a Director of SGLN. This, we reckon, is something you should definitely keep in mind while making your investment decision.
