Greenfield Farms Food, Inc. (OTCMKTS:GRAS) Revs Up on Press Release

7GRAS_chart.pngIt’s been a good long while since we last looked at Greenfield Farms Food, Inc. (OTCMKTS:GRAS). In the ten months that passed since then not much has changed with the company. Just like last time, GRAS went through a sudden hiccup and closed up in triple digits over a single trading session. GRAS moved its biggest share volume ever and closed 116% up.

The trigger for the surge was that a press release from the company informing that it transferred the remainder of its debt to Asher Enterprises, one of the notoriously toxic financiers working with OTC companies. The debt has shrunk from a $167 thousand in September 2013 to a remainder of $38 thousand in April and that remainder has been restructured and transferred so that Asher no longer holds any GRAS convertibles.

Obviously, the market decided this was grounds for rejoicing and traders bought GRAS up to $0.0026 per share. There is no filing detailing the specifics of the debt transfer, so it’s not too clear why it triggered such excitement.

Additionally, yesterday’s session was shrouded in mystery. According to Quotemedia, the share volume GRAS shifted yesterday amounts to a little over 664 million shares. Meanwhile, OTCMarkets lists that the company had 369 million shares issued and outstanding as of March 04, 2014. The company’s most current filing reflecting outstanding shares is an 8-K providing details on the deal with Carmela’s Pizzeria and the 1:100 reverse split effected in late October. That filing culminates with a statement that there were 87 million post-reverse-split GRAS shares issued and outstanding on December 18, 2013.

5GRAS_logo.gifIt’s perfectly understandable if all this leaves you rather confused. Assuming the OS figure listed on OTCMarkets is the correct one, this would mean yesterday the company managed to shift its entire outstanding share count nearly twice over a single session – theoretically possible but not too likely.

The annual report of GRAS is not yet published as of the time of writing. The company filed a NT 10-K and extended the filing deadline until April 15, or today. This report should contain the long-expected revenue figures coming from the acquisition of Carmela’s Pizzeria in Q3 of 2013. If the annual report does not show convincing figures and consolidated financials for Carmela’s last fiscal year, things may go very sour, even for those who did not attempt to chase the stock on its way up.

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