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By Boyan Angelov
Dec 02, 2014

American Green, Inc. (ERBB) Gets Good Evaluation From Oaksterdam University

Earlier this morning, American Green, Inc. (ERBB) issued a press release, announcing the company's Jurassic Oxygenation Watering System (JOS) has been tested by Oaksterdam University and given the prognosis of a 20-30% increase in net revenue. This is the second recent news around the company's initiatives that came out in the span of a week's time.

On November 26, ERBB announced retaining the services of fellow OTC pink tier Digital Brand Media & Marketing Group, Inc. (DBMM) for enhancing its marketing strategy. This announcement did not have notable impact on the market, as ERBB stock retained a stable level of price through the last few sessions.

While we wait to see how the latest news affects American Green, the long term disposition of the company remains to be relatively stable. With the latest financial disclosure recently coming out, a more in depth look into the company may be of help. The quarterly report for the first period of ERBB's current fiscal year accounts for the following information:American Green, Inc. stock chart

  • Cash: $48.9 thousand
  • Total current assets: $247 thousand
  • Total current liabilities: $5.8 million
  • Revenue: $60.1 thousand
  • Net loss: $573.8 thousand

The company has a limited amount of cash and assets to operate with and an alarmingly high amount of liabilities. ERBB has not been very successful in its sales in the last quarter and has ultimately ended at a net loss nearly twice as high as in the previous period.

At the very end of the last fiscal period, American Green issued four convertible debentures in the total amount of $1,187,177. Each debenture was issued at a 50% discount from the lowest closing bid price for the 12 months prior to the conversion date. This is one of the many instances in which ERBB has issued toxic notes in recent months, as evidences by its issuance history.

In the last quarter, the company reported issuing a total of 91,561,818 common stock shares to cover $50,359 of principal and accrued interest on two debentures. ERBB also disclosed issuing 31,361,763 common stock shares for officer compensation valued at $90,750 and 7,784,070 common stock shares to consultants valued at $23 thousand.

In October, American Green issued a total of 132,853,956 restricted shares of common stock to members of OneBode Holdings, LLC and OneBode Ventures, LLC to complete the final payment of membership interests valued at $1,129,077 in total.

ERBBThe high amounts ERBB has been issuing raise the risk of dilution of the company's common stock. By September 30, the company had 4,026,082,442 shares of common stock issued and outstanding. With the rate of issuance, will American Green soon reach its 4.75 billion A/S limit? While it remains to be seen whether this will indeed occur and if ERBB will elect to increase its amount of authorized shares, doing due diligence may be a wise call before investing in the company at this point.

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