The smoke from the fireworks has dissipated; the indigestion form all the hot dogs has been flushed; It’s Monday, July 6 which means we are officially into the dog days of summer trading. At first glance, some pre-market news which came from Vapor Hub International (VHUB) about debt having been converted at 0.15 a share almost made you think there was money to be made today. Having an even deeper look at what other convertible debt was on their books and the madness that VHUB stock can’t double from here at 0.04 is baffling to say the least.
Prior to the opening bell today, Vapor Hub issued a press release stating that $614,341 of convertible debt, representing the total amount due, including interest, to Gotama Capital, S.A., was exchanged into VHUB shares at a conversion price of $0.15, 2.5X the current PPS. The conversion caused for 4,095,605 shares to be issued in order to retire the debt which, taking into consideration the last 10Q filing for the period ended March 31, 2015, brings the total OS to around 73 million. But wait a second, does that mean VHUB stock is a puff-puff-pass because of this?
Looking at VHUB while it’s trading around 0.04 shows a company due to report annual revenues of over $3.5 million (revenues were $3,590,044 for the 9 months ended March 31, 2015) while it’s market cap is less than their fiscal year revenues (around $3 million with the new shares issued to Gotama). Looking at the other debt being carried on their balance sheet, it has conversion price of 0.10 per share which alone would call for a 150% increase in VHUB shares.
Looking back at the chart, the big jump from the 2’s to the 4’s occurred back in May when the Company made their first monthly installment, around $35,000 in cash, plus interest and other costs, to the Typenex Co-Investment, LLC. The statement “No shares were issued to pay the installment” seemed to have a more bullish effect on VHUB than today’s news which, in reality, should have been better accepted.
If you prefer to focus on big board penny stocks, here’s a few under $3 that had a half-decent continued run as of the close of Trading Thursday, July 2:
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Considering it’s summer time, grabbing hold of some VHUB shares to stash until Football season kicksoff could be the way to play the ticker. A large number of traders are waiting to catch the next DNRG, but until the BMM team issue a ticker, it’s going to be a grind on the OTC with a flip here and there worth a steak dinner or two.
About VHUB Stock
Vapor Hub International Inc. is a California-based company engaged in the development, production and sales of electronic cigarette products, including high quality e-liquids, custom mechanical mod e-cigarettes, and unique personal modifications.
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