Yesterday was a green day for CANNABIZ MOBILE, INC (OTCMKTS:LGBI) as the share price surged on double digits. The stock price jumped 12.50% to close at $0.00180. The share volume was 38.62 million compare to 49.35 million. Last week was a terrible week for Cannabiz Mobile as the share price traded subdued in red zone. It came down hard from its latest high which peaked around $0.0037 in the last week of March.
The flippers paradise
The gain that stock price witnessed in March was hard to explain as it was the case when it posted gains back in February. In fact the last few months have been a roller coaster ride for the company with the stock price bouncing up and then declining sharply, offering swing traders lot more opportunities to make quick money out of it.
The long term investors should consider the red flags associated with the company before even thinking of investing in it. As per the last report, the company recorded just $22 in cash. Yes, it is a pitiable figure. The liabilities stood at $748,000. The revenue came at minimal zero. The quarterly net loss was $45,000. The company didn’t generate any revenue in FY2012 and FY2013. Even there was no revenue generated in the first three quarter of FY2014. The company’s last quarter report was expected by the end of March. However, the month has ended with no indications of the last quarter report.
Cannabiz Mobile is offering its shares well below current market prices. A settlement deal associated with overdue debt to IBC Funds LLC warranted the issuance of LGBI shares at almost 45% discount from the prevailing market price. Moreover, the company states that issuance of common shares at a mssive discount to pay the debt is a good idea.