After going straight for the bottom for 5 session in a row the stock of Solanbridge Group, inc. (OTCMKTS:SLNX) finally got a breath of fresh air during yesterday’s trading. The company had a rather turbulent session but in the end managed to close more than 8% in the green at $0.0065. Despite the positive outcome SLNX are still more than 65% down from their recent high.
Less than a month ago SLNX
were sitting deep into the triple-zero price levels and on quite a few occasions actually had session with zero trades. They operated their seafood and steak restaurant acquired last year and although revenues grew significantly the overall state of the company remained quite depressing;
• $500 cash
• $6 thousand current assets
• $662 thousand current liabilities
• $557 thousand revenue
• $64 thousand net loss
The numbers were hardly enough to capture the attention of the market and maybe that is why SLNX decided to become the newest entrant into the marijuana industry and on March 29, this year they signed a memorandum of understanding with a Nova Scotia resident who held a license to grow marijuana. After failing to reach an understanding within the initial 30-day period the company negotiated a 14-day extension.
On Monday we finally learned that SLNX
have signed a letter of intent for the development of medical marijuana opportunities with Mr. Beaver Paul of Germain Paul and Associates and Mr. Earle G. Hickey of First Halifax Financial Corporation, Inc., a Nova Scotia corporation. The problem is that we couldn’t find even a mention of license within the whole PR article.
The previously announced acquisition of Tasty Greenz, LLC is also surrounded by red flags as we have already discussed in our previous articles. We still couldn’t find any information about the entity outside of SLNX
‘s statement and the fact that it was apparently created just two months ago is far from encouraging.
For now interest in the company is still relatively high and the reduction of the outstanding shares is going on smoothly with 1 billion already retired out of the planned 1.5 billion but that is far from enough to sustain their current valuations. The whole sector is falling down both in share price and traded volume lately and an industry wide catalyst will be needed in order to change the investors’ sentiment.
In early trading today SLNX
have resumed crashing and are currently sitting 13.5% in the red at $0.0056. Even Creative Edge Nutrition Inc. (OTCMKTS:FITX
) which were shaping out to be one of the more stable marijuana pennystocks have been suffering corrections for the past three sessions currently trading at $0.07 per share.