Investors who were either involved already or had just gotten introduced to the OTC Markets at the start of 2014 found that finding any ticker that did anything with marijuana was a simple, fast way to make money trading penny stocks. With the times having changed dramatically due to all the start-up scams in the sector, sourcing out the ones that have a working business model is usually step one for the filtration system to determine whether they are worth even paying attention to. Well, considering how Green Cures & Botanical Distribution Inc. (OTC Pink: GRCU), a cannabis and industrial hemp products innovator, not only had their product line, Rico Suave Energy Drink, available on Amazon.com as they promised, the recent run on GRCU stock warrants some attention for those looking to score some green.
Back in February, Green Cures & Botanical Distribution said that their Rico Suave, a hemp infused energy drink/supplement, was scheduled to launch the following week and, what do you know, it did just that. Rico Suave is an energizing beverage that offers a special fusion of hemp and taurine and the product line is readily available on Amazon.com for under $1 per 8.4oz can and has 5 and 4.5 star reviews to back up the product line.
Since the line was just launched in Q1 and was not ready for order through the online shopping channel, Amazon, until the last week of Q1, sales for the beverage line should show a significant improvement to the top line results for the company when those results are released to the public. The cash flow from sales will be judged against the $10,952 in revenues reported for the three month period ended March 31, 2015, but are unlikely going to be enough to have produced the net income needed to pay off tax liabilities on the books and increase the $610 in working capital Green Cures had at the end of the period.
What’s worth noting from a closer look at the company’s liabilities reported is that, with just $180,076 in total debt due at the end of Q1, $11,674 of that debt was said to be removed in conjuction with the planned spin off of Rico Suave, thereby eliminating that line of products from their revenue stream. Further details were due to be provided, as stated in the PR issued April 15, yet, without any updates, GRCU stock has spent the past week plus recovering from triple zero land (0.0003) and is back to where it was when the spin off announcement was issued, gaining as much as 400% in the process.
It’s unclear how the other CBD product lines will fill the gap that an Amazon available product line could, but one thing for sure is the outstanding tax liability of approximately $30,000 for operations and business conducted throughout the year 2014 and the first quarter of 2015, as well as the $23,000 that was said to be due for legal services as of May 15, 2015, is unlikely to have been paid for with cash. They are going to be needing much more than just the $7,819 a “long term investor” donated in exchange for a 5% per annum convertible note payable during Q1 if they are going to be able to stay focused on their hemp-infused nutritional, botanical, sports, and body care products.
Regardless of the financial constraints the company may be under, the 1.6 Billion plus shares of GRCU stock out there are seeing some bullish love from traders who got involved over the past few weeks. With yesterday’s session being one of the biggest volume ones in just over three months, seeing Green Cures & Botanical Distribution’ GRCU stock stay on this green climb will be an achievement in and of itself.
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