In yesterday’s trading session, the stock price of American Green Inc (OTCMKTS:ERBB) declined another 7.46% to close the trading session at $0.00620. With the sharp decline it registered a new 52-week low. Within a year, the stock has declined over 90%. The company issued its last press release three weeks ago. It was nothing but included the fluff content reporting another deal with ENDEXX CORP (OTCMKTS:EDXC). The press release highlighted the company’s plans for developing a platform that will assist in the standardization of the marijuana industry.
The problems
Here, the question should not be what is wrong with American Green, instead it should be what is going on with its ZaZZZ machines. The news of the ZaZZZ machines was the sole reason behind the strong gains in ERBB’s stock a year ago. The introduction news of machines and other empty promises claimed by the company’s management in 2014 are now having a real impact on the stock price.
The promises
The shareholders who bought American Green stocks at a price of $0.10 per share in March 2014 can recall a news piece stating President Stephen Shearin’s forecast to have 1,000 ZaZZZ units operating by Christmas 2014. They will even remember the excuse of technology given to delay the launch of ZaZZZ machines. It was just the start of the excuses which are seeing no end.
The details
American Green introduced the ZaZZZ machines in February 2015 and from there on total of installed has not even reached 20. As per the news, 18 machines were shipped, but the location of only a dozen is known. Moreover, out of the twelve machines only two show as online. It has been almost three months the machines were launched, and in these months American Green managed to release a quarterly report that reflected $243,000 in revenue and $2.28 million in net loss.
