Totally Hemp Crazy (OTCMKTS:THCZ) Changes Name And Ticker
Totally Hemp Crazy (OTCMKTS:THCZ) added 9.13% to its market value yesterday, after changing its name and ticker to Rocky Mountain High Brands, Inc. (OTCMKTS:RMHB).
Evidently investors thought that was a good move and decided to get busy with THCZ, in spite of the fact that the name and ticker change was just that. Nothing else that could warrant excitement happened, yet there the hype was, pushing THCZ stock prices towards the dime mark.
This being the case, investors would do well to be wary of the probability of a correction, because it seems quite high right about now.
Then again, even if the jump is not taken into account, investors should have been wary of a correction. Why?
Put quite simply, at $36.8 million THCZ‘s market cap is simply ridiculous. Mind you, we’re still talking about a company, whose latest financials look like this:
- cash – $96 thousand
- current assets – $1 million
- current liabilities – $1.5 million
- quarterly revenues – $730 thousand
- quarterly net loss – $39 thousand
There’s also the issue with the company’s convertible notes, which by the way constitute almost all of its $1.5 million current liabilities. The problem with them lies with the fact that THCZ hasn’t specified the conversion terms on said notes. For all we know, there may be $1.5 million worth of extremely toxic debt in the hands of noteholders right now, just waiting to be dumped on the market.
Long story short – investors that wish to make informed decisions about committing to THCZ stock still have to wait until some more light is thrown on its current affairs. Until it files a reasonably informative report, jumping on the THCZ hype train will be nothing less than a blind gamble that may well end in disaster.
