GroGenesis Inc (OTCMKTS:GROG)

This Monday investors traded less than 5000 shares of GroGenesis Inc (OTCMKTS:GROG). Yesterday, however, the daily volume reached the near-record number of 895 thousand shares. The sudden spike in interest pushed GROG to an intraday high of $0.46 per share but the positive momentum quickly dissipated and by the time of the closing bell the stock had dropped back down to $0.409.

The disappointing performance could have been anticipated – the red flags surrounding the company are both numerous and extremely serious. Let’s start with the latest financial report covering the quarter ending February 28. Back then the company had exactly:

• $118 cash
• $20 806 total current assets
• $343 thousand total liabilities
• $2876 revenues
• $91 thousand net loss

In March GROG sold 45 thousand shares priced at $0.35 but do you think that even with the $15 thousand in proceeds the balance sheet could justify the current market cap of $33 million?

Despite the horrendous financials of the company the entity Emerging Growth LLC published a rather positive PR about GROG on Tuesday. If you are wondering why anyone would try to hype up a company with such limited resources you should take a look at this disclaimer. Apparently back in April Emerging Growth received a $10 thousand compensation paid directly by GROG. GroGenesis were also targeted by a paid pump with a weekly budget of $150 thousand and the landing page created for the pump is still active.

As of May 5 the outstanding shares of the company were 81.5 million. 40 million of them, however, were issued at a split-adjusted price of just $0.0008. The people who own these shares stand to reap millions in profits if they manage to dump them on the open market.

With all this it mind it is up to you to decide whether GROG is a sound choice for investment.