OSL Holdings Inc (OTCMKTS:OSLH) is going tipsy-turvy as investors are unsure on how to go ahead with the stock. The movement of the stock price is a bit shocking as the ticker falls on one day to recover on another. However, the margin of recovery in the stock is decreasing day by day, which indicates that the hype created around the stock is fading in its effectiveness.
Deal with Shuman
As per the most recent press note, OSL Holdings Inc (OTCMKTS:OSLH) said that it is planning to enter into a joint venture as well as licensing agreement with Marijuana fame, Cheryl Shuman. While the new release instantly brought attention of the investors, its impact is gradually diminishing. The company had talked about inking a licensing deal with Shuman’s Beverly Hills Cannabis Club and Canna Dabba Doo, but any further development has not been heard. The Twitter handle of Shuman was flooded with the tweets about the prospective deal, but investors are asking for more answers.
Poor financial picture
Moreover, OSL Holdings Inc (OTCMKTS:OSLH)’s poor financial standing is another cause of worry. The company maintains a cash balance as little as $36,000. Its current assets and current liabilities are $946,000 and $6.6 million respectively. The company reported revenues of $1 million accompanied with a loss of $1.9 million in its very recent quarter. The numbers clearly show that the company does not fit good in any of the liquidity or profit earnings ratio parameters. In addition to this, the company’s ever-expanding shares outstanding too raise eyebrows of many.
As per reports, the company’s shares outstanding surged from 152 million in 2014 to 535 million in 2015. Certainly there is a lot of explanation left on the part of OSL Holdings Inc (OTCMKTS:OSLH). The stock price of the company increased by 13.40% to $0.0110 on Friday but again fell by 18.64% to $0.0090 during the after-hours. An average of 28.37 million shares traded during the session.