Earlier this month, Greengro Technologies Inc (OTCMKTS:GRNH) reported some preliminary results for 1Q2016 and 4Q2015, and they sounded impressive. The management reported that they expect to record at least $522,000 in quarterly sales in 6 days period which is a remarkable 243% above the numbers logged twelve months ago. Also, it is almost 209% better than what the firm reported in the last quarter of 2015. The company’s record revenues in 1Q2016 continue to surge due to steadily growing demand for its product lines related to cannabis.
When the reported figures are compared to the 3Q performance, the progress looks even more remarkable. As per 3Q update, the cash stood at $32,000. The current assets came at $765,000 while the current liabilities amounted to $285,000. Greengro reported revenue of $98,000 on net loss of $58,000.
Naturally enough, market was excited about last update, and since then the volumes have been substantial. Last Friday, the stock did manage to surge nearly 30%, closing the week at $0.034. It even started the week on strong note, but failed to extend its momentum in last trading session as it plunged more than 19% to close at $0.039.
It is evident that Greengro sales are surging, but it don’t necessarily confirm that Greengro is a profitable firm. Looking at the older financials, it is seen that profitability has been a rather big issue, and it is the reason investors are shying away from staying invested in the stock. And for the investors that are already in, there is no assurance if they are prepared to sit back and wait for the next reports at all. In 2015, certain individuals obtained almost 29 million shares in lieu for services. If these investors decide to sell their positions at once, Greengro stock might come under a lot of pressure.