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By Boyan Angelov
Aug 29, 2014

American Green, Inc. (ERBB) Increases Gains After Announcing IP Patent Deal

American Green, Inc. (ERBB) issued a press release on August 25, announcing the company had completed its IP patent deal for the ZaZZZ machine vended product purchases. ERBB stopped its recent descent with this news. After a slight hesitation in the next day's session, the ticker registered two sessions in the green that made a significant climb up the charts. Yesterday, ERBB closed at $0.017 at a 13% price increase on a high trading value.

The two patents ERBB secured were reportedly produced for the purpose of “safely vending age-controlled, identity-specific items”. While the company stressed on the ZaZZZ machine being the world's first cannabis vending machine for public use, ERBB has thus far not given any details on the distribution of the product. There is no input on where this machine can be found and what locations it has been delivered to or is planned to be delivered to.ERBB_chart2808.png

Another venture ERBB has yet to complete is the opening of a medical research facility the company said it had been planning. The latest news on this venture came out in a press release on August 5. ERBB stated it has shifted its focus from Colorado to California and has selected a location near Hemet, CA.

The project the company talked about is to be carried out in partnership with fellow pink tier U.S. Energy Initiatives Corporation, Inc. (USEI). ERBB said that it will focus on medicinal test crops grown in light deprivation greenhouses using Charlotte's web strain for deriving CBD extract for testing and analysis. While the details around the company's plans and the statement seemed to indicate that ERBB is close to starting work on the project, there has been no update on this news in over three weeks.

A further look into the company's financials can give a better idea of what ERBB's potential is at this stage of its development. The latest quarterly report for the period ended March 31, 2014 accounts for the following:

  • Cash: $30,3 thousand
  • Total current assets: $71,2 thousand
  • Total current liabilities: $3,8 million
  • Revenue: $68,9 thousand
  • Net loss: $426,7 thousand

ERBB has a low sum of cash and assets to rely on for financing its future ventures. The company has accumulated a high amount of liabilities, while ending at a net loss. The revenues ERBB has managed to make are far from impressive.

ERBB_logo.jpgERBB has recently been using debentures to secure the financing required for carrying out its ventures. The company has covered some of its debt through conversions at $0.0005 per share. The venture currently has 4,75 billion authorized shares after an increase from 3,75 billion on January 9. It remains to be seen how the company will use its remaining A/S share amount, as the current O/S number is sitting at 3,85 billion.

Looking through the company's recent history, some due diligence is in order before considering investing in ERBB's stock.

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