Rapid Fire Marketing, Inc. (OTCMKTS:RFMK) Leaves the Pinksheets Behind
Yesterday the stock of Rapid Fire Marking, Inc. (OTCMKTS:RFMK) was officially uplisted to the much more respectable OTCQB tier. Even without a corresponding official announcement the reaction from the market was strong and immediate. Throughout the session more than 240 million shares changed hands resulting in a dollar value of $772 thousand. At the end of the day the stock was sitting 18% higher at $0.0032.
Joining the ranks of higher tier stocks is undoubtedly a huge step for the company but unfortunately for its shareholders it doesn’t address any of the numerous red flags. RFMK is a producer of vapor inhalers and has benefitted greatly from the massive marijuana hype that took place at the start of the year. Their share price may have jumped from $0.0002 to the double zero price ranges but we have no idea if their sales have done the same.
According to the latest quarterly report at the end of September revenues from the CANNAcig product had diminished by the massive 86% compared to the same period the previous year. The other financial results didn’t inspire much more confidence:
- $1812 cash
- $362 thousand total assets
- $181 thousand total liabilities
- $3242 revenues
- $90 thousand net loss
In their own words RFMK estimate that they will need at least $1.2 million in order to continue with their operations during the next twelve months. This brings us to the next huge problem with the stock – the massive amount of dilution that has been taking place.
In the nine months covered by the quarterly report another 780 million new shares saw the light of day bringing the outstanding shares to 2.5 billion at December 27. If you look at the company’s OTCMarkets profile you will see that it shows more than 3 billion outstanding shares just a month later at January 29 – close to 500 million shares in just a month! With a whopping 5 billion authorized shares there is still plenty of room for further issuance.
Not to mention that the dry herb vaporizer the company has been talking about for nearly a year is still not ready for commercialization. On February 21 RFMK announced that all that is left to do is final graphics and packaging for the unit but a month later we still don’t know if production has begun.
The e-cig and vaporizer sector has been enjoying quite a bit of interest in the past few months and many pennystocks have been tempted to enter the industry. AvWorks Aviation Corp. (OTCMKTS:SPLI) did a reverse merger with Vapor Group, Inc. and 
since then have climbed from an initial price well into the triple zeroes to more than 30 cents. Yesterday they tumbled a little and slid down by 6% to close at $0.31.
since then have climbed from an initial price well into the triple zeroes to more than 30 cents. Yesterday they tumbled a little and slid down by 6% to close at $0.31. Another contender in the industry is American Heritage International Inc. (OTCBB:AHII). Their stock performance has been even more impressive reaching price levels above $1.50 as of yesterday. Still, investors should be extremely careful when trading with the stock because at the moment it is being touted by a multy-million pump involving a special landing page, email alerts and as of the start the week a hard mailer.
