Yesterday the share price of GROGENESIS INC (OTCMKTS:GROG) recorded another disastrous trading session. The stock price wiped over 20% of its price and closed at $0.495. This is one of the lowest closing prices for the company since it commenced active trading in the last week of February. So far just in the last four trading sessions the stock has declined close to 60% dropping from a high of $1.06. Yesterday’s decline came at a share volume of 403,495 almost double the average volume of 225,503.
The concerns
GroGenesis is surrounded by several red flags that warrant the use of caution. It has been the target of a paid pump since the first week of March and the landing page developed by the group Untapped Wealth is still active. There is a disclaimer at the end of page that states the promotion has a weekly budget of $150,000. Investors even took a note of a hard mailer being put into circulation while recently a radio promo has been recorded.
The financials
The picture around GROGENESIS INC (OTCMKTS:GROG) gets even grimmer when the latest financial report submitted by the company is analyzed. It covers the three-months ending November 30, 2014, when it recorded $147 in cash. The quarter was a zero revenue generating quarter with $69,000 in net loss. The total liabilities came at $271,000 and the total current assets were $20,806. The company was supposed to submit the next financial report by Mid-April; however, the company filed a notification of late release giving them extension of another five days.
The takeaway
As of now, the direction of GroGenesis’s stock price largely depends on the anticipated financial report due in next five days. If the numbers are good, the stock may halt its sharp decline. Investors should keep in mind that a group of unnamed investors bought 40 million shares for just $32,000 after the 25-for-1 forward split.
