In last trading session, the stock price of American Cannabis Company Inc (OTCMKTS:AMMJ) declined 1.94% to close the day at $0.176. The decline came at a share volume of 453,444 compared to average share volume of 762,631.
Pushed by the numbers found in the yearly report for FY2015 the stock of American Cannabis was able to touch highs of more than 30 cents per share. However, the momentum quickly faded as in the following trading session, the stock recorded four sessions in red. Yesterday trading session was no different as the stock corrected by over 1% and dropped down below $0.18 mark.
On April 22, American Cannabis issued a press release which failed to impress investors. Instead of a promising press release highlighting about its achievements, the company released a short article with the Chief Executive Officer of the firm simply stating that their revenues surge from $1.26 million at the end of FY2014 to $2.78 million for FY2015. It didn’t highlighted on its amazing fourth quarter performance during which the company reported revenues higher than the preceding three quarters.
As of December 31, 2015, American Cannabis posted $556,000 in cash. The total current assets came at $713,000 and total current liabilities amounted to $593,000. American Cannabis reported revenue of $2.8 million on net loss of $516,000. American Cannabis remains a pennystock and therefore jumping in without considering the risks could work out to be a costly deal.
After all, at the close of last year the firm had convertible notes outstanding that could be converted into common shares at $0.08 per share, rate that is almost 60% lower than the last market price. Earlier American Cannabis reported that it obtained a notice for the conversion of $58,000 of that amount into more than 720,000 common shares.