Practically the entire pot sector of the OTC kept sliding yesterday. The dollar volume leader happened to be Tranzbyte Corp. (OTCMKTS:ERBB, ERBB message board), dropping sharply and ending Tuesday 20% down. The ticker logged one of its largest share volumes for the past month as it tumbled, shifting 262 million shares and stopping at $0.045 per share.
The sector is likely still experiencing tremors caused by the SEC suspension of Growlife, Inc. (OTCBB:PHOT). However, the escalation of ERBB’s drop may have been caused by a couple of extra factors. The company finally conducted the unveiling of its ZaZZZ vending machine. There is still no official PR coming from ERBB concerning the event, even though ERBB did its best over the past month to hype people up ahead of the vending machine’s launch.
A relatively small YouTube channel named “TheLumberDoktor” contains a couple of videos of the unveiling event and interested investors can use that as a reference point for the scale of things. In a video interview, when asked about the security features of the vending unit, ERBB actually stated that “…we are not fear-based, we didn’t develop this worrying about bad people, we developed it to be better for good people”, whatever that may mean, explaining that the units will not be placed on sidewalks but inside dispensaries. Even though in an earlier interview with TheLumberDoktor ERBB COO Stephen Shearin explained that the machine will be a ‘sophisticated piece’ and will have a ‘little hole for a camera’, the unveiled machine did not appear to have a camera, as dispensaries are already monitored by their own cameras. The machines that were on display in the videos and were unveiled over the weekend also did not take medical cards just yet, even though the company is allegedly ready to ‘integrate’.
It’s difficult to tell what exactly scared people out of ERBB. Whether traders got scared by PHOT’s suspension, whether the footage they dug up of the ZaZZZ unveil simply didn’t seem sufficiently convincing, or Medbox, Inc. (OTCMKTS:MDBX) implying that ZaZZZ may be violating a MDBX patent raised an extra red flag, the bottom line is that ERBB dropped a hefty 20% in a single session and is now 50% down from its late March high of $0.10 per share.
Other pot tickers that slipped in double digits yesterday include Medical Marijuana, Inc. (OTCMKTS:MJNA) who closed 10% down at $0.18 per share. mCig, Inc. (OTCBB:MCIG) took a nose dive immediately after the opening bell and never really recovered, closing 13% down on heavy volume.
This entry passed through the Full-Text RSS service — if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.