CGrowth Capital Inc (OTCMKTS:CGRA) didn’t start the year on a strong note and kept on hovering in a price range of $0.0010 to $0.0015 in the first quarter. It fetched minimal investor attention, with daily dollar volumes hardly exceeding $1000.
The performance
The things changed for worse for CGrowth after it reported its annual numbers for FY2014. The financial report showed that the company had cash of $1,227. Now, that’s a dismal performance. The current assets stood at $174,000 while current liabilities came massive at $1.7 million. The annual revenue was $486,000 and yearly net loss came at $561,000. The company is posting decent revenue compared to other OTC firms. However, it was offset by dismal cash and assets figure.
The financing
Considering the fact that the company is operating at a loss, it would be tough for CGrowth to support its operations. The most likely option for acquiring capital would be via the sale of equity, but the company has already opted for dilutive financing. A major part of the outstanding shares was in the form of debt conversion at a price of $0.0005 per share.
The momentum
Despite the dismal numbers, the share price of CGrowth spiked in the initial weeks of April, but things changed soon. However, it once again entered into green territory after it announced a letter of intent being signed with Wildfire Cannabis Company LLC. The news managed to boost the share price considerably and recorded gains of more than 11% on Friday’s trading session. The current week started well as share price jumped another 15.71%.
The recent decline seems to be a bit stretched and it was evident in yesterday’s momentum. The stock price of CGrowth declined more than 14% to close the trading session at $0.00690. The decline came at a share volume of 26.71 million compared to average share volume of 15.39 million.
