Tranzbyte Corp. (OTCMKTS:ERBB, ERBB message board) finally managed to pull off a green session after dropping 50% since it last closed up. ERBB‘s share price climbed 23% and stopped at $0.025 by the closing bell. The trigger for the jump was a press announcement that hit the wire shortly before the market opened.
ERBB published a press release informing the public that the company’s Mach 1 tweaked version of the fabled ZaZZZ pot vending machine will be leaving the factory floor next week, in preparation for shipping and setup in four different dispensaries across three states. This will be backed up by a live stream event taking place on June 12, broadcasting live from all four locations. The company will also host a conference call with a brief Q&A session on June 10, in an effort to keep investors informed.
This was enough to get excitable traders in a frenzy once again, despite the fact that on closer examination, the PR doesn’t really give many reasons for such enthusiasm. The release doesn’t mention the names of the dispensaries or even the states in question. There is still no word on the expected state approval that is needed for machines to be set up for operation in dispensaries. It’s not clear how the company went from awaiting approval from Colorado state authorities to shipping the vending machine to three states at once, with no announcement of clearance in between.
The PR was timed impeccably, coming at a time when ERBB was down almost 80% from its March high, achieved through media exposure and a stream of PR related to the ZaZZZ machine. The price sank deeper, dragged by some dismal details in the company’s latest quarterly report. The clearing of $150 thousand in convertible debt over the last quarter with 247 million shares issued at $0.0005 and the accumulation of another $384 thousand in debt, once again converting at $0.0005, did not go unnoticed by traders who were buying into ERBB at prices as high as $0.099 on the open market.
It’s difficult to determine whether the new PR is just a well-executed stunt to buy more time and extend the waiting game by a few more weeks, or ERBB is making a genuine push to start monetizing its product. With scarce details in the last announcement and with the company’s next official report due as late as September 30, it will be quite a while before investors can look at hard revenue figures coming from the ZaZZZ.
Speaking of companies bouncing on PR, yesterday Creative Edge Nutrition, Inc. (OTCMKTS:FITX) managed an equal percentile jump, closing 23.9% up. FITX published a press announcement informing the company retained law firm Thompson Hine, LLC as corporate counsel. This alone was enough to push the share price into the green.