If you’re a fan of wild share price swings then Green Innovations Ltd. (OTCQB: GNIN) may be the perfect company to look at considering the ups and downs experienced over the past few months. For those who built a big position back when shares could be had at a 52-week low of 0.1700 on November 19, 2012 and then sold when those shares hit a 52-week high of 3.35 on February 19, 2013 then the gains must have been massive yet for those who bought during the quick ascension are likely still licking their wounds from the even quicker collapse down to 0.3700 two days after that high.
Now GNIN is once again making a comeback and their share price has pushed to a high of 1.12 on Friday, delivering favorable gains to those who saw the recent low as an opportunity but the question is, will the price continue to climb?
On Friday GNIN announced that their wholly-owned subsidiary, Green Hygienics, Inc., had completed a category review process with Whole Foods Markets and had been approved for sale at their stores across the United Sates. Green Hygienics is the exclusive licensed North American distributor of American Hygienics Corporation’s 100% tree-free bamboo-based product line, including personal care and paper-based goods.
Obviously getting their products into Whole Foods should be seen as an accomplishment but it shouldn’t be viewed as a guarantee that GNIN will be flooded with revenues. To back up for a second and be clear, the products have been approved for sale at Whole Foods; this doesn’t mean that they have received any purchase orders for those products.
This was spelled out by GNIN’s Tray Harrison, National Sales Manager of Green Hygienics, in today’s press release as he stated, ”I look forward to working closely over the next few weeks with representatives in each Whole Foods regional office to secure what we hope will be their first of many purchase orders.”
Looking back at what triggered GNIN’s climb in mid-February still presents questions today. While they announced on February 13, 2013 that Green Hygienics had surpassed $500,000 in sales and purchase orders in just their first three months of operations and the dollar figure has already surpassed certain milestones outlined in GNIN’s licensing agreement with American Hygienics Corporation, an agreement that actually provided a full year for compliance, it says little about the details of that exclusive license agreement.
The only details about that Licensing Agreement with AHC were provided in the press release from February 13, 2013 in which they stated Green Hygienics “has a North American exclusive arrangement with AHC for the distribution of certain AHC bamboo products for a period of five (5) years. This agreement will automatically renew for a minimum for five (5) additional years based on certain revenue and product mix conditions being met.”
So while GNIN can boast of strong purchase orders as well as re-orders until they actually show what they are making off of these orders investors are simply left in the dark. Perhaps something as big as Whole Foods could make this a big deal for GNIN but investors won’t find out any time soon as the company’s first quarter results aren’t due until May, that’s a long time to wait to see if the risk was worth taking.
It would seem reasonable that GNIN would provide some insight into how their purchase orders will benefit their bottom line but their silence on the matter only leads to suspicion.