Growblox Sciences Inc. (OTCMKTS:GBLX) Falling Down Hard
Growblox Sciences Inc. (OTCMKTS:GBLX) lost 20.3% of its market value yesterday, as investors started losing faith in the company again.
As it stands, it really is no wonder that GBLX is currently falling as hard as it is, because any research done on the company yields terrifying results. Since the company’s fiscal year ends on March 31, there’s no way to discern its current financial state, but the fact that it filed the following financials on Dec 31, 2013 speaks for itself.
- Cash – $51 NUMBER NOT IN THOUSANDS
- Total current assets – 3 thousand
- Total current liabilities – 1.1 million
- NO REVENUES
- Net loss – $183 thousand
Obviously having 51$ to your name is not impressive, so the pumpers omitted that simple fact from their promotions. But money on hand or no, someone saw fit to pay $150 thousand to promote GBLX, and the pump campaign has been going on for some time now, with varied success.
Still, horrible as these facts are, they don’t even begin to cover all the red flags surrounding GBLX. Investors may want to check out the “toxic debt” part of the company’s filings, which declares that, on March 21, the company sold 200 thousand investment units to an undisclosed investor at $0.50 a piece. Each one of those unit contains one share of the company’s common stock and two warrants, exercisable at an undisclosed rate. Another $114 thousand worth of debt was converted into 438 thousand shares soon after, then a $459 thousand worth of notes was converted into 1.7 million shares – both at rates of about a quarter a piece. A glance at the company’s charts reveals that in almost all cases, the company’s stock was acquired at prices nearly TEN TIMES LOWER than its market price at the time.
A couple of other red flags include GBLX‘s unbelievable press releases, the fact that until recently it was operating from a virtual office, and the fact that its current address is unknown. Investors who value their money would do well to consider all of these when making their mind up about GBLX.
Most of the popular pot-stocks had better luck than GBLX in yesterday’s session. Terra Tech Corp. (OTCMKTS:TRTC) stock, for instance, managed to jump 14.05% on a 5 million dollar volume.
