AvWorks Aviation, Corp. (OTCMKTS:SPLI) Continues Upward Drive as Cannabis Stock

AvWorks Aviation, Corp. (OTCMKTS:SPLI) looks like another short-term wonder, rising like fireworks, but with the great risk of popping and fizzling out. SPLI added more than 23% to $0.0265, on comparatively low volumes above $270,000- but still the last weeks of trading showed that something was brewing around this company. The last time we reviewed this company was Thursday, where we also expressed doubts if SPLI would be able to last over the long weekend. SPLI1802.png

Of course, now SPLI has the undeniable benefit of being another novel marijuana stock, after a few years’ stint as a supplier of parts for the aviation industry. The link to the cannabis business is still weak- the company promises it would merge with Vapor Group Inc. and thus gain access to a reportedly viable, revenue-producing vendor of electronic cigarettes.MCIG1802.png

Vapor Group, Inc., not to be confused with International Vapor Group, is a wholesaler that seeks retailers for its series of brands. What is curious is that even before the merger, Vapor Group has posted links to financial filings that belong to the SPLI ticker. So the link and the seemingly random merger are not that random- both companies are based in Florida.

Whatever the case, the most worrying aspect of the deal would be the real and potential stock dilution. An 8-K filing of the agreement states that SPLI would issue a further 750 million shares to Vapor Group, and enlarge the pool of authorized shares to two billion. The amount of shares waiting in the sidelines is worrying, and is a factor that may be preparing SPLI for a concerted effort of boosting the stock price.

Not that SPLI needs it right now, when exuberance is natural and does not even need a promotion. SPLI rides the wave of many other newcomers that re-appropriate standard electronic cigarettes to the cannabis industry. But there are so many choices in this sector, that it is difficult to tell apart the quality of each company.

Regular producers of electronic cigarettes were all the hype at one point, but were wiped out by those that linked themselves to cannabis. Vapor, Corp. (OTCMKTS:VPCO) went through a reverse split, but could not keep the $10 levels, sinking down to around $5 on a deepening downward trend. The high price and the diverted attention of investors did not help this stock.

Inversely, mCig, Inc. (OTCMKTS:MCIG) is still doing well, meeting the new week with a positive drive, after two days of buying took up the stock price to 33 cents.

For now, SPLI is a wait-and-see, as even at two cents, a low-priced ticker can take any direction with a great daily change. The company also holds the finalization of the merger still secret, and this may mean more news and attention. But for such a novel stock, it is best to avoid overinvesting, to avoid being hurt by any of the deep corrections that are not uncommon among cannabis stocks.

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