Friday brought another red close for Tranzbyte Corp. (OTCMKTS:ERBB, ERBB message board). The company’s share price slipped 4% and the ticker stopped at $0.04 by the closing bell. This was the fifth red day in a row for ERBB.
The company’s last press announcement came on April 24. ERBB informed that iMD Corp. (OTCMKTS:ICBU) placed a ‘pre-order’ for one hundred of Tranzbyte’s Jurassic Water units. The order is valued at $1.7 million. The most current financial report published by ICBU lists the company’s cash reserves at under $2 thousand. This doesn’t rule out the possibility of ICBU paying for the order in shares, as the exact means of payment for the order is not detailed.
The news helped ERBB step on the brakes and slow down its descent, with the ticker dropping just 2% on the day the PR came out. Still, this did not culminate in a reversal and ERBB’s price slid again on the next day.
ERBB’s flagship ZaZZZ machine should still be in the process of awaiting state authority approval in Colorado. In the absence of any news or actual order announcements for ZaZZZ, traders on discussion boards have started making openly hilarious annual revenue projections assuming wide adoption of the vending machine by dispensaries, having customers lining up in front of the machines all day long, every day of the week, and factoring in average customer spending amounts.
It’s understandable why long investors would hope for such a scenario but at the present moment this is just wild and largely unfounded speculation. In a Fox Business interview ERBB’s COO explained that the company will be offering ZaZZZ machines to dispensaries against a ‘very low-cost lease’ and added that the company cannot legally share in the profits from ‘flower products’, so those trader projections are based on a skewed perception of how ZaZZZ should work as a business model.
The slipping share price that sailed under the 50-day moving average with relative ease probably caused a stir among long investors who may be trying to boost each other’s confidence with such random estimates. The short-term news they should really be looking out for is ZaZZZ getting a stamp of approval from Colorado authorities, which would be the most important step towards a wider adoption of the machine and the future flow of actual ZaZZZ revenues in ERBB’s coffers.
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