American Green Inc (OTCMKTS:ERBB) Pops Out of Oblivion

After keeping quiet for nearly two full months, American Green Inc (OTCMKTS:ERBB) plopped yet another inconsequential press release in late June. This was followed by another announcement that trickled through yesterday. Unlike the June 29 PR, yesterday’s news managed to give ERBB‘s failing share price a tug and a pull and the stock ended up 15% up by the closing bell.

ERBB announced the formation of a Colorado-based subsidiary, created for the purpose of a deal the company announced in 2014 – a joint project with Herbal Elements. The goal is to ultimately have a “grow and extraction operation”, which ERBB hopes will bring as much as $1.75 million in annual revenues by 2017.

If this was the first time ERBB was making loud proclamations and projecting hugely optimistic revenues, it would have been a lot more believable. However, given the company’s track record of continual disappointment, missed deadlines and fruitless collaborations with other OTC companies, the release is not exactly enthusing.

ERBB is keeping a lid on any ZaZZZ-related developments, possibly with good reason. At the moment, the ZaZZZ Network website lists less installed machines that it did a couple of months back. Whether that means that, for example, Hempful Farms returned the ZaZZZ machine they previously had installed or their unit was removed from the network site for some other reason is hard to tell.

At this point, it’s pretty safe to say that the ZaZZZ is not going to be a significant revenue engine in the company’s last reporting quarter, with 10 machines installed at the moment according to the network website, two of them not selling THC products and four of them not connected to the Internet. Five months after the launch, there is still no online interface where customers can manage their promised ZaZZZ accounts.

Despite all the talk about diversification, everyone following the company is aware that ERBB rose to prominence in 2014 just because of the ZaZZZ machine – a project that failed to deliver on the majority of its promises. When almost a year of focused effort to make the ZaZZZ the next big thing in the OTC pot sector culminated in 10 installed pot vending machines, some of which don’t even dispense THC products, investors would do well to keep a cool head about the projected $1.75 million.

ERBB has until September 30 to file its next due report, as its fiscal year end is in June. 

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