Medical Cannabis Payment Solutions (OTCMKTS:REFG) Crashes Despite Paid Pump

Last Wednesday around the time of the closing bell we began receiving email pumps for the stock of Medical Cannabis Payment Solutions (OTCMKTS:REFG). The promotion was launched by the numerous affiliates of Freedom Ventures – LiquidTycoon, SuperHotPennyStocks, OTCRockstar to name a few, who disclosed a compensation of $15 thousand for their services. Later in the evening though Darth Trader and The Stock Psycho also joined in for the sum of $20 thousand. Add another wave of emails sent before the opening bell on Thursday and all seemed to be ready for the stock to run.

And indeed the artificial hype managed to lure investors in resulting in REFG registering a traded volume of over 4 million shares, such amounts were last seen at the start of February. The increased attention didn’t translate into a price increase though and despite opening with a gap up at $0.1315 at the end of the session the stock was sitting at $0.122 just 1.6% above the previous close. The performance was far from satisfactory and that is why on the next day 1-2-3 Stock Alerts and Penny Stock Circle were added to the pump bagging the biggest compensation of $50 thousand.

The result was a massive crash minutes after the opening bell and another 4 million shares getting dumped on the market. At the end of the day nearly 20% were slashed and now REFG stood at $0.098.

Taking one look at the fundamentals of the company could easily explain the depressing performance. According to the latest quarterly report REFG finished the second quarter of the year with the following results:

$11 313 cash and total current assets !!!
$143 thousand total current liabilities
$5000 revenues
$5672 net loss

And these are the numbers after “a thrilling and enjoyable year” as the CEO of the company described 2014 in the last PR from September 23.

It is true that at the end of August they managed to strengthen their balance sheet after receiving a $500 thousand strategic investment but so far there have been hardly any details revealed about the deal. The PR didn’t contain any information aside of the total sum and there is no 8-K form covering the agreement.

With limited operations and now suffering from the effects of the paid pump the risks around the company should not be underestimated. Do your own due diligence and always take what the pumpers say with a grain of salt.