Pazoo Inc (OTCMKTS:PZOO) has successfully continued its upward rally during the last day. The investors’ interest in the stock remains intact following the announcement by the company about the upcoming launch of its much-awaited marijuana testing facility in Las Vegas. As per the official press release, the marijuana testing facility is set to open on June 3. Pazoo Inc (OTCMKTS:PZOO) holds 40% share in the said testing facility.
The company had initially planned a soft launch of the said facility on April 20, but later buried its plans in order to go ahead with full-fledged opening of it. The news has already set fire on the stock as investors are closely watching the space ahead of the opening event. At this rate, there is no denial that Pazoo Inc (OTCMKTS:PZOO) is just close to touching its latest high level at $0.02.
But, such announcements should not veil the real financial status of the company, which at this point is a bit discouraging. As per the financial results with respect to the end of 2014, Pazoo Inc (OTCMKTS:PZOO) reported a cash of $733,000, while its total assets are worth $848,000. The current liabilities of the company are as huge as $3.6 million. The revenues of $111,000 and a net loss of $4.9 million for the year 2014 too raises concerns about the financial future of the company.
Issue of share dilution
Apart from the weak financial position, Pazoo Inc (OTCMKTS:PZOO) also faces the problems of share dilution, which has been enormous since the start of this year. Though the company attempted to contain the dilution through repayment of $400,000 worth of convertible notes, but the impact was negligible. The company’s outstanding shares tripled from 193 million to 525 million within a short span of four months during December-May. Over and above this, a fresh slot of new 270 shares was again added this year.
As the company battles with the problem, it stock recorded a value gain of nearly 3% and closed at $0.0138. A total of 28 million shares traded hands during the day.