After a week’s fame in March, Pazoo Inc (OTCMKTS:PZOO) has made a comeback on investors’ minds. The stock ended last week on a positive note and had been heading northwards throughout the week. The optimism in the company could be credited to its big plans that are set to roll out in April, which is drawing the investors’ attention.
Two Developments
As per the published information, Pazoo Inc (OTCMKTS:PZOO) holds a 40% share in MA Associates & LLC, which is set to complete the construction of a marijuana testing facility this month. Additionally, it is speculated that the said marijuana facility could be opened by as early as April 20. In addition to this, the company has also announced that its subsidiary, Harris Lee, LLC has signed a Binding Letter of Intent with Front Range, which will allow the former to start operations at Steep Hill marijuana testing laboratory, situated in Denver. Apart from this, the terms of the Binding Letter also provide Harris Lee with an opportunity to receive all the assignable rights and licenses from Front Range.
Financial position
More exciting is the fact that Harris Lee will acquire 100% ownership of the laboratory by as soon as April 30, 2015. Thus, Pazoo Inc (OTCMKTS:PZOO) has been successful in expanding its footprint in three states, namely, Oregon, Colorado, and Las Vegas. While all seems good, there is a little bit of concern arising for the company’s financials.
As per the most recent financial record released for the period ended on September 30, 2014, Pazoo Inc (OTCMKTS:PZOO)’s cash balance was limited to $95,000. This followed equally insufficient current assets balance of $438,000. On the other hand, current liabilities of $1.92 million pose a risk on the liquidity profile of the company. The quarterly revenue of $208,000 and loss of $1.25 million are also unconvincing about the future growth of the company.
The stock of Pazoo Inc (OTCMKTS:PZOO) rose by nearly 16% to $0.0104 as 21.02 million shares traded on the day.
