One stock that exploded higher on Monday in heavy volume action was PotNetwork Holdings Inc (OTCMKTS:POTN). The stock appeared to benefit from a key update ahead of the trading session noted that its Registration Statement on Form 10 was filed with the U.S. Securities and Exchange Commission (SEC) on May 9, 2019, to register its common stock under the Securities Exchange Act of 1934, and that this filing will become effective on Tuesday, July 9, 2019 (tomorrow).
According to the release, the filing, amended by the Company on July 5, 2019, includes audited financial statements for the years ended December 31, 2018 and December 2017 and unaudited financial statements for the first quarter of 2019. So far, this announcement has had a seemingly transformative impact on the market, helping to drive shares sharply higher. But one should also be well aware of the fact that this stock has a rich history in one-off pops.
PotNetwork Holdings Inc (OTCMKTS:POTN) has two wholly owned subsidiaries, First Capital Venture, the makers of Diamond CBD OILS and Sunrise Auto Mall Inc.
Diamond CBD is focused on the advanced research and development of “the industry’s finest premium hemp extracts” and making them available to the global marketplace. The Company’s “notable team”, consisting of hemp industry pioneers and natural product experts, chemists, and scientists, is dedicated to producing “the finest and purest Cannabidiol (CBD) oil.”
POTN’s message continues: “Setting the Company ahead of its competitors, First Capital Ventures Inc and Diamond CBD Inc. deliver advanced product quality to market through the team’s creation of diverse and top quality hemp extracts that contain a broad profile of cannabinoids and other natural hemp derived molecules.
The result is a robust selection of Diamond CBD Oils, made from Industrial Hemp, which enhances the formula to be considered among the most powerful natural CBD E-Liquids on the market. Sunrise Auto Mall, Inc., launched in June of 2014, as an operation geared toward enabling people challenged with bad or no credit in securing quality transportation while simultaneously rebuilding the client’s credit.
POTN has developed a highly profitable business model around the continually rising subprime lending industry. Potnetwork Holdings Inc. acting as the holding company for the present subsidiary is planning to continue to expand from within as well as through future acquisitions.”
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As noted above, POTN just announced that its Registration Statement on Form 10 filed with the SEC in early May to register its common stock under proper regulatory status measures will go live tomorrow (Tuesday July 9, 2019).
The chart shows 69% tacked on to share pricing for the listing in the past week. In addition, the stock has witnessed a pop in interest, as transaction volume levels have recently pushed 60% above the average volume levels in play in this stock over the longer term.
“We are delighted to be setting the stage for the next phase of the Company’s growth and expansion,” said Kevin Hagen, CEO of PotNetwork Holdings, Inc. “It is yet another step forward in what we believe to be a milestone year, 2019, in terms of strategic growth, market presence and record revenues.”
At this time, carrying a capital value in the market of $50.5M, POTN has a chunk ($562K) of cash on the books, which is balanced by about $131K in total current liabilities. POTN is pulling in trailing 12-month revenues of $25.5M. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -1.6%. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $POTN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $POTN, either long or short, and we have not been compensated for this article.