American Green Inc (OTCMKTS:ERBB) posted gains of more than 10% to close at $0.0115 in last trading session. The shares closed in green after logging 52-week lows. On Wednesday, ERBB declined more than 7% to close at $0.0104.
Struggling to find the bottom
American Green’s share price might have bounded back on Thursday’s trading session, but it doesn’t indicate downfall is over for American Green Inc (OTCMKTS:ERBB). The share prices are hovering around 52-week lows and moreover are trading a cut just above a cent per share. The market has shrugged off the news of its new product launch of ZaZZZ, a marijuana vending machine of the company. Instead of posting gains, ERBB’s shares are moving towards double zeroes.
Disappointment from launch
The problem with product launch was not the dissatisfaction from the product, instead how it was launched. American Green launched its new product on a low scale. Two marijuana vending machines were shown and then installed in a Seattle dispensary. The only positive factor, company highlighted in accompanying Press Release was that this was the first purchase of recreational pot flower product done through a vending machine. The purchase revealed a minute distinct difference between the first ever recreational pot sales in January 2014 and now done from ZaZZZ machine.
American Green’s next financial report is due on Friday after it filed for an extension. The report should disclose quarterly revenues in the hundreds of thousands. If the company fails to meet the guidance, it will adversely affect share price of American Green Inc (OTCMKTS:ERBB).
Apart from it, the investors would closely look at the management comments on its partnership agreement with Greenhouse Solutions. Previous, Stephen Shearin, the President of American Green Inc (OTCMKTS:ERBB), said that the deal with Greenhouse Solution is only the beginning. The agreement will enable the company to participate in retail sales in all the locations where its machines are placed.