Urban Barns Foods Inc (OTCMKTS:URBF) spent the entire day in a very narrow range and finally finished the last trading session unchanged. The slight breach of the previous day’s low prevented it from forming an Inside Day pattern but the contraction in volatility was well evident. Interestingly, even in this narrow price range for the day, the volume showed a markedly higher level. The volume of the day 53 million was considerably higher than the daily average of 23.6 million, as the investors tried to decide on the direction of the next trend.
Urban Barns Foods Inc (OTCMKTS:URBF) jumped more than 130% on last Wednesday followed by decline of over 36% in next trading session. Last time the company made news when it was at the receiving end of a paid promotional campaign. At that time, it didn’t appear like anything short of a promotional campaign could get investors interested in URBF stock, even for a short time. Unfortunately, things have not changed since then.
The highlights
The last two trading sessions have seen nearly half a million dollars worth of Urban Barns stock change hands. It is an all-time record, considering the fact that the stock has been illiquid for most of its time spent on OTC platform. It is not evident exactly what managed to increase investor interest last week, since there seem to be no paid promotional campaigns going on this time.
However, the one thing that is evident is whatever the reason behind the excitement was, it is vanished now. The company’s financials are dismal as it reported cash of $40,000 in last reported quarter. The total current assets stood at $243, a major part of which is forms accounts receivable. Urban Barns reported revenue of $17,000, net loss of $574,000 and gross loss of $1.500.
The details
Urban Barns last issued its quarterly numbers in the month of June. During the quarter finished April 2015, the revenue was $17,052 and gross margin was negative. The company recorded grave water issues with its artesian well and hence, faced a large amount of production loss.
In order to rectify the problem, the company installed an ozone water purification system, which helped the company to improve water quality and register plant growth. The company has numerous convertible notes in its books with provisions that enable the note holders to convert the debt into shares at sharp discounts.
