The slow drop of American Green Inc (OTCMKTS:ERBB) stock price that has been evident over the past couple of weeks translated into a sharp decline last week. The stock price declined more than 9% to close at $0.007. The decline came at massive volume of 32 million shares. It erased a small part of its losses close to 1.5% on Friday’s trading session. But again the week has started on a weak note as the share price tumbled around 2% in early session.
The weakness is evident in American Green stock price as it open with a gap down and then the declines get deeper as the day progresses. The stock has declined close to 30% in just one month. It is now trading into double-zero land and it will be tough to climb back to a penny.
Here, it is important to mention that the stock price of American Green is trading close to its 52-week low. It is a bad news for shareholders but definitely positive for convertible debenture holders. As such a rate, they can convert debt at $0.0035 a share, as per the 50% discount compared to the lowest closing bid price twelve months back. It is the plan that the company uses for convertible debt financing.
The other problem that American Green is facing is of the ZaZZZ machines that have not developed in planned way. The ZaZZZ Network site still highlights only two locations have fully activated machines. The installment is far away from the actual targets. The traders will hope that the problem of technology doesn’t surface again as it did last year.
The product have missed it launch date last year in June. American Green Inc (OTCMKTS:ERBB) is facing an increased outstanding share figure that is bumping against the authorized capitalization. The management had reiterated that there will be no reverse split.