At the end of May the stock of BreedIT Corp. (OTCMKTS:BRDT) fell down to just 30 cents per share representing a loss of nearly 70% compared to the recent high of $0.89. But now it seems that investors are rediscovering the company and for the last 5 sessions BRDT has been going nowhere but up on increasing volumes.
Yesterday it added another 9% to its price and closed the session at $0.469. Throughout the day more than 1.4 million shares changed hands, the biggest traded volume logged in by the stock for the past two months.
The positive performance of the stock is taking place without any PRs from the company or the involvement of paid pumpers. In fact the last official press release came on May 15 and announced that BRDT
have received the first $200 thousand investment from INTIVA Pharma LLC. The total amount of the investment could potentially reach $800 thousand in the form of straight equity restricted stock priced at $0.30.
The company certainly needed a boost to its financial statement because the iBreedIT, intelligent decision support software (“IDSS”) is still not generating any meaningful revenues. BRDT
finished the quarter ending March 31 with the following results:
- $1.1 million cash
- $2.1 million total current assets
- $233 thousand total current liabilities
- $1450 revenues
- $3.3 million net loss
It is quite obvious that BRDT
is relying primarily on its equity in order to finance its operations. And although the dilution of the common stock is not happening at an alarming rate most of the newly issued shares were sold at a considerable discount from the market price.
Just in March 3.2 million units consisting of one common stock and one warrant were sold at an average price of $0.204. That month the stock of the company was trading at price ranges above 55 cents. Another 6 million shares were sold to 10 non-US private investor at an average price of $0.143. The management of the company also decided to issue more than 5 million options for the purchase of common stock to 4 directors and officers with an exercise price of just $0.05. As we said, at the end of yesterday’s trading BRDT
was sitting at nearly half a dollar.
decision to focus on the cannabis industry
certainly managed to get the attention of the market but they will need to start showing some concrete results. At the moment their market cap stands at $41 million, a number that is simply too big
for the current state of the company. That is why it is extremely important to do your own due diligence before attempting any trades with the stock.
Yesterday the pump for Green and Hill Industries, Inc. (OTCMKTS:GHIL) crashed hard wiping 20% of its value and sliding back down to $1.12. Cannabis Science, Inc. (OTCMKTS:CBIS
) on the other hand jumped by 10% and closed at $0.117 after the company finally filed its financial report for the first quarter of the year.