Penny stock traders love to get “high” off of marijuana stocks and for those that were toking up gains in the Spring of this year on Totally Hemp Crazy Inc. (OTC PINK: THCZ) all through February, March and well into April, many may remember another ticker that nearly matched the 3,660% gains it provided. If you were too high to remember the ticker, perhaps OSL Holdings Inc. (OTCQB: OSLH) might ring a bell as it, in the shadows of THCZ stock, ran from 0.001 for as much as 2,640% in gains on news that the socially conscious business focused company , dedicated to consumer advocacy, social activism and the advancement of civil liberties, decided against a reverse stock split.
Now that they’ve issued a bunch more shares of OSLH stock and are advancing into management of a medical marijuana cultivation and dispensary business, is it once again time to toke up on some cheapies for another run?
OSLH Chart (March 11 – May 11)
A year ago this October, OSL Holdings bought all of the outstanding common stock of Go Green Hydroponics Inc. for $1,800,000, placing them firmly in the marijuana sector with two business units: 1) Equality Rewards, a technology platform delivering consumer rewards programs; and 2), OSL Medical Services, a management, future planning and services platform focused on the development and financing of, among other things, indoor gardens and cultivation facilities in the herbal and natural medicine industry. The deal immediately put impressive top-line numbers up on the board as the Company reported revenues from merchandise sales of $1,005,395 and management fees of $225,000 for the three months ended February 28, 2015: an amount equal to roughly 30% of their net loss for the period and about 15% the total liabilities ($7,617,797) that were on the books at the close of the period.
Now, as of the close of their fiscal period, OSL Holdings’ OSLH stock was fully diluted with 641,938,303 of the 649,000,000 shares authorized issued and outstanding. What spurted the run which began in late March was when the Company issued a press release stating that “the Board and Executive Management Team have decided not to move forward with a reverse stock split.” The net result of the news was a 26-bagger run which peaked on the same day that the Company chose to amend their Articles of Incorporation to increase the number of authorized shares from 649,000,000 to 1,947,000,000. Ouch.
OSLH stock didn’t immediately crumble on the billboard advertisement that dilution to a number of the toxic financiers on the books were going to now be getting shares in lieu of payment. Actually OSLH shares bounced around just enough to allow for time those who bought at the top to average down before the share price could no longer hang in penny land and has since been on a “rabbit hole” drop since.
Yesterday, investors got the news that they wanted when the Company filed an 8K with the SEC which detailed how, on June 29, 45,454,545 shares were issued upon a debt conversion and, on July 7, another 44,752,500 shares were issued for the same, bringing the total issued and outstanding shares of OSLH stock to 1,026,255,988. Now that there is a number that can be worked with, determining what and how the LOI with California medical marijuana firm Pacific Retail, LLC will be of a benefit to top line numbers will shed some light on whether a bunch more shares are due to be issued or if cash can be used to pay off the sharks before they start feeding on retail traders.
With OSLH shares now trading at 0.0015, just a #*@$ hair’s reach from where their low point was prior to the March run, traders will likely be eyeing entry points to take a chance on what might repeat itself. Since you can’t be any more clear than to say “Hey, we got a billion shares issued and outstanding,” perhaps the transparency will create the reverse psychology optimism needed to see a run, or at the least a bounce, start.
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