This has been a strange week for the markets as the Nasdaq got hit hard earlier this week is down again now and yet today many WallStreetBets favorites like Gamestop are having a big day. Stock speculation is alive and well and on the US OTC exchange shares of NoHo, Inc. (OTCMKTS: DRNK) are among the top gainers of the day with massive volume on a large number of trades. Check out the chart.
The stock as you can see has been going up a lot and nothing gets the attention of small cap traders more than a fast moving stock. However, the OTC Markets website has a stop sign warning for the stock, because it is not a current reporting issue. There is simply very little public information on the company as it is behind in its filings to the exchanges.
This makes it risky. It is basically a shell company with a market cap of around $2.5 million USD. The company did put out a press release early this morning talking about its planned share combination/merger with Sibannac, Inc. According to the release, “Sibannac will purchase the intellectual property of NOHO, consisting of its trademark and proprietary formulations, but NOHO will retain the use of its name and branding, through a separate license agreement, as it moves into production of new consumer products. Sibannac will issue up to $2.8 Million Dollars of Sibannac warrants at a strike price to be determined. Sibananc will register the warrants and issue the same to NOHO in the transaction. NOHO will issue the warrants to the shareholders as a dividend.”
Sibannac’s CEO, David Mersky, said, “After a lengthy period of evaluation, I am very pleased to announce the asset purchase transactions between NOHO and Sibannac. Having Eric Stoll and Lifetime Branding aboard to oversee the buildout and commercialization processes for both companies is simply a marvelous opportunity. Sibannac is ready to manufacture the products for itself and NOHO in its FDA facility in Scottsdale. Sibannac’s product lines, branding and positioning will cater to a different demographic than NOHO, and these transactions allow for a natural fit between the brands and companies.”
The stock action and news has generated excitement on Twitter.
$DRNK— Stock Pop (@Stock_Pop) February 24, 2021
– Being bought by $SNNC
– Sibannic will manufacture and distribute $DRNK ‘s hangover and CBD products in their new facility in AZ
– No RS per CEO
– PR tomorrow. Sibannac will release theirs soon
– Barry Hollander is the consultant. He took $OZSC to .25 & took $INND to .09
$DRNK – Very intriguing info could come from CEO David Mersky tomorrow AM in News🔥— StockMinds009 (@Stockminds009) February 25, 2021
In the last press release he stated, “We believe we have a transaction envisioned that will result in significant value to our shareholders”
Read below. pic.twitter.com/WYUn8jKm9f
$DRNK Guys you’re worrying about the wrong stuff in conversion rates and $SNNC shares etc. just focus on a nice PR tomorrow for $DRNK so we can continue going up – Share exchange is the last step in the process – Let’s go!!— Stronghands777 (@stronghands777) February 25, 2021
With the OTC warning sign we consider this an opaque company and situation that requires more information to really know what is going on. I am not trading it and neither is Mike Swanson, the head editor of this website. To get his free stock trading alerts subscribe to his update list by clicking here.