ROCKY MOUNTAIN HIG (OTCMKTS:RMHB) management remains at a loss on how to arrest the slide in its share price.
In the last few weeks the company has brought on a new member of the board and stepped up its plans to go into the cannabinoid industry.
At this rate, the only way seems to be down.
Take a look a the stockâs price movement over the last few months
Rocky Mountain High Brands, Inc. was incorporated in 2000 and is based in Dallas, Texas. It is a consumer goods company specializing in brand development of health conscious, hemp-infused food and beverage products. The company currently markets a lineup of four naturally flavored hemp-infused beverages (Citrus Energy, Black Tea, Mango Energy and Lemonade) and a low-calorie Coconut Lime Energy drink. Rocky Mountain High Brands also offers hemp-infused 2oz. Mango Energy Shots and Mixed Berry Energy Shots develops, manufactures, markets, and distributes hemp-infused food and beverage products.
The company offers hemp-infused beverages, including energy drinks, black tea, and lemonade; hemp-infused edibles, such as energy bars; and hemp-infused energy shots and coffee shots. It is also developing wine based ready-to-drink cocktails; cannabinoid infused beverages; hemp protein bars and hemp chia seed bars; and hemp infused natural spring water. The company markets its products through brokers, distributors, and retailers. The company was formerly known as Totally Hemp Crazy Inc. and changed its name to Rocky Mountain High Brands, Inc. in October 2015.
The firm, in November announced that Michelle Krebsbach has been appointed as its director of Marketing. Mrs. Krebsbach has over twenty years of experience in marketing and advertising, both as the owner of her own agency and as a Marketing Director and Brand Manager for brands like Fossil, Inc., Toni&Guy, and TGI Fridayâs. She developed and marketed products for both Fossil and Toni&Guy and developed a national beverage program for TGI Fridays.
Mrs. Krebsbach also worked at Harwood Marketing Group, developing in-store retail promotions for clients such as Corona, Kimberly-Clark, Nokia, Cricket, Nabisco, Mrs. Smithâs and Cargill Meats.
Rocky Mountain High Brands, Inc.âs Chairman, President and CEO, Michael Welch, stated that one of her strengths was a great consumer-based approach to marketing with which she would be able to create and execute programs to build consumer awareness, trial and loyalty.
Mrs. Krebsbach was quoted saying, âI am very excited about joining Rocky Mountain High Brands at this very critical juncture. I have been involved with several well-known brands during my career. I am also very aware of the health benefits of hemp and look forward to helping bring them to consumers.âÂ Source
Mrs. Krebsbach received a BS Degree from Texas State University. She founded Mkreative Group, a boutique marketing and graphic design agency in 2005. Her agency specializes in developing and designing packaging, branding, and producing marketing campaigns for companies that are working to gain shelf space at retail.
The firm also retained Jonathan Miller, Member-in-Charge of the Lexington office of the law firm of Frost Brown Todd LLC, to assist the Company in the exploring entry into the hemp-derived CBD (cannabidiol) market due to a decision by theÂ board of directors recently to reconsider its position to offer hemp-derived CBD in its line of beverages. This is a rapidly expanding market that the company previously considered and now is actively engaged in discussions with suppliers and copackers. Prior to making a final decision, its management decided to acquire the legal guidance and expertise of Frost Brown Todd LLC on how to best proceed.
Although not always reflected in the share value, RMHB has increased its gross profit year on year, jumping from a loss of $59,000 in 2016 to $0.15 million in 2017. However, losses have also increased from a loss of $3.7 million in 2016 to $7.1 million in 2017
The firm however is heavily leveraged with liabilities of over $5.8 million on its balance sheet which is more than double the current liabilities from the previous year. It has very low liquidity with a very low current ratio 0.13. This means it is likely that the company will need new funding within the next period except it is able to increase cash inflow from its operations.
Investors and analysts are unsure of what to expect in the future from RMHB. It is hoped that the management is able to find a way to recover, and soon too.
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Image courtesy of Helen K via Flickr
Disclosure: WeÂ have no position in RMHB and have not been compensated for this article.