Tuesday afternoon Arizona Governor Jan Brewer announced she had directed the Attorney General to file suit seeking a declaratory judgment from a federal court regarding the legality of the Arizona Medical Marijuana Act (AMMA).
Yesterday, Altitude Organic Corporation (PINK:ERBB) lost 34.4% of its value. After an impressive 22.7 million shares had changed hands, ERBB closed at $0.0164.[BANNER]
ERBB is a medical marijuana management company. As a result from Governor Brewer’s action, the dispensary certificate awards are on hold, which could be a major setback for ERBB.
Some traders took quite a hit from yesterday’s dive. A “chunky-g” claims on iHub he had bought 111,111 ERBB shares at $0.0245 the day before. Others see this more as an opportunity to buy in at lower prices, or so they claim.
Even without this “setback”, ERBB had some difficulties. The latest published quarterly shows the company had some liquidity problems with just $1,261 in cash and $20 thousand in total current assets, paling in significance to the the $2.9 million current liabilities.
In conclusion, the uncertainties around the AMMA just added some more short-term tension for ERBB. Where it might go in the long run is anybody’s guess, but for now trade will be primarily based on expectations.
