Wie viele andere PotstocksJust like many other pot stocks Hemp Inc (OTCMKTS:HEMP, HEMP message board) wasn’t doing well since the legal marijuana hype from last year dissipated. The company did manage to make an impressive climb earlier this month, but quickly returned to its downward slide.
One of the reasons for which HEMPcouldn’t hold its ground was the fact that the company’s market cap of over $40 million was already looking quite steep when you compare it to what the contents of its books were. Here are just some of the numbers that were contained in the company’s report for the first quarter of the year.
- cash: $632 thousand
- current assets: $2.3 million
- current liabilities: $2.27 million
- quarterly revenues: $6,223
- quarterly net loss: $1.08 million
But even more troubling was the massive dilution thatHEMP underwent in the recent past. As we have written before, the company increased its authorized shares from 3 BILLION to 5.5 BILLION after reaching an outstanding share count that surpassed 2.7 BILLION as of March 31.
An even though the company stock received enough breathing room we see that HEMP has executed a 1 for 10 reverse split today that should have reduced the outstanding share count to around 270 million. This, of course, leave quite a lot of room for further dilution and considering the massive amount of outstanding shares that the company has we might see it very soon.
Meanwhile, yesterday session ended with a 13.33% loss and HEMP closed at $0.013 with a total of 26 million traded shares and a daily dollar volume of $352 thousand. HEMP is sitting at this price since today’s market open as well and only time will tell where the ticker will go from here on.