ROCKY MOUNTAIN HIG COM USD0.001 (OTCMKTS:RMHB) Making All The Right Moves

In our last piece about ROCKY MOUNTAIN HIG COM USD0.001 (OTCMKTS:RMHB), we noted that the hemp-infused food and beverage products that the company commercializes have great potential as cannabis is accepted more and more in the US. We said:Source

"2017 has the potential to be a breakout year for Rocky Mountain High Brands. The one thing that is for sure is that legal cannabis (in most states), and its societal trend of acceptance, is here to stay. So long as this trend continues, Rocky Mountain High Brands should find itself in a favorable position to expand and market its products, and grow the company." Source

We published our piece in March 2017 and explained the upward trend that the company saw in the beginning of the year. Now it seems that after a consolidating movement that took place in April, the share price has started to rebound again. In this article, we will tell you the reasons behind this move.SourceRecent DevelopmentsIt was difficult to identity any of the company’ news to justify the share price increase that occurred recently. Have a look:SourceOn May 15, 2017, the Q1 2017 was released here. We could not find any press release noting the most relevant financial figures released, thus we did the assessment by ourselves. At the end of the day, the most likely explanation for the share price increase could be a change in the fundamental value of the company. We found that the revenue line in the quarter had declined from $157,138 in 2016 to $117,814 in 2017, whereas the expenses had increased. On the balance sheet, we found that the most interesting accounts are the following (note the large amount of deductible tax deductible accumulated deficit)

• Prepaid Expenses: $1,919,104
• Total Assets: $2,564,332
• Derivatives: $5,136,765
• Total liabilities: $7,401,573
• Tax deductible accumulated deficit: 24,488,395

In our opinion, the earnings release was largely expected or the numbers were neutral, as the amount of assets increased, but the revenues were not that good. Thus, it did not create share price volatility. Hence, we continued to look for other reasons for the recent share price jump. On May 24, 2017, the company released a new appointment that may explain some of the share price move. Kevin Harrington joined the Board of Directors as a Marketing and Communications Consultant. Why is he so important? He is a TV celebrity in the US, who may increase the company's visibility. This is an emerging company that needs to get its products to the public. This kind of profile seems to be exactly what the company needs. These are the most remarkable words of the new member of the Board:

“Since the infomercial industry was so successful in the United States, I believed it could be as popular across the globe. I’m now convinced that television infomercials are the perfect marketing medium for a new product introduction such as Rocky Mountain High’s planned Cannabidiol (CBD) infused drinks that are intended for markets focused on health and wellness." Source

On the top of it, we saw two more positive news items that appeared right after this one, which may explain very well the large volume that we saw the following days. On May 25, 2017, the company announced "a distribution agreement with Stephenson Wholesale Co., Inc., dba Indian Nation Wholesale". What does it meant? It means that the company will be having another distributor, which will help the company increase the top line. It is good news and the share price reacted accordingly. Furthermore, on May 30, 2017, fantastic news got reported. Have a look:

"its Board of Directors has approved a rollback of the conversion rights of the Preferred A Control Block from 1 share of Preferred A to 1,200 shares of Common Stock to 1 Share of Preferred A to 100 shares of Common Stock. By approving this measure, the potential dilution of the Company’s Common Stock will be reduced by 1.1 billion shares." Source

What does it mean? It means that every shareholder would be able to get a little richer, as the amount of shares that the convertible securities holder can convert were drastically reduced. The market celebrated the news by pushing up the share price.ConclusionIn this article, we saw some very positive aspects that made the share price rebound after a consolidation phase that occurred last month. First, the company signed a new distribution agreement, which will represent new revenues in the future, which the market celebrated. Furthermore, the equity restructuring that was announced a few days later was also very good news and the market pushed up the share price again. Finally, we also checked the Q1 2017 report and saw that the results came in as expected. Overall, RMHB is releasing positive news and making moves in the right direction. Our advice is to try and follow the stock closely as it may surprise even more soon. We will be updating our subscribers as soon as we know more. For the latest updates on RMHB, sign up below!Disclosure: We have no position in RMHB and have not been compensated for this article.