Another Silly Penny Stock
- Alan J. Brochstein
- Nov 21
- 3 min read
Updated: Nov 22
I saw a press release the other day that caught my attention. It was released by Protext Mobility (TXTM), and it was very bullish-sounding. The press release, published on 11/19, was a shareholder update.
I don't follow TXTM closely. I did pay attention to its predecessor, Plandai Biotechnology, which was PLPL, but it was a total scam that I called out in 2013:
It was $0.53 when I published and is now trading near zero. The relationship between PLPL and TXTM was explained in 2018. The company has a 17-part roadmap from 2017 to 2022 that is on its website.
I did call out TXTM in July 2022 on X.com, and my last post there was in November 2022 until my post on 11/19 after I saw the press release:
I want to follow up with some analysis on the company so that readers can learn about OTC stock scams. First, I will summarize the press release that came out on the 19th, and then I will review their disclosure that was released later that day.
As far as the press release, the company was "thrilled" to share it! It was "proud" of its "$505 million debt-free balance sheet, with no dilution and no reverse split." It had made an announcement a few days earlier about Strategic TruLeaf, a company with which it has signed a non-binding letter of intent.
The 11/19 press release was the 3rd one in November, and there were 4 in October. The company went from no press releases from July 2023 until September 2025, and it had a Caveat Emptor designation from OTC Markets until September 2025.
Speaking of the OTC, the company's Q3 disclosure was released earlier this week:
So, first, readers should be aware that the company does not file with the OTC, a yellow flag. The second area of concern is that the company, which operates in South Africa (Republic of South Africa Medical Marijuana Dispensaries), is headquartered in Florida:
The third area of concern to me is that there 8.79 billion shares! The good news is that this has not changed since the end of 2024.
Insiders control a lot of the company:
The balance sheet shows total assets of $511 million, with $505 million in cannabis seeds. Liabilities are just $703K.
The income statement shows no revenue this year and an operating loss of just $25K for the first three quarters.
The company operates with a going concern statement:
A big question about this company is the cannabis seeds, which are essentially the entire value of the company. Here is what the filing said:
This is a very low-priced stock that doesn't trade so much and which is on the OTC. VERY RISKY. If one owns it, one needs to be comfortable with the management and confident that that inventory is valuable.
The stock has run up a lot this year, beginning in June. I have no proof that someone is paying people to say good things about it on X.com, but there sure are a lot of people posting and putting TXTM on their bios. Here is the action since the end of May:
It fell hard in the summer, but it is rallying again. I don't cover the stock, and I don't really care about it. It is down since I looked at it in July 2022, and I am trying to warn people that this looks like a mess to me. The price is just $0.0042, which gives it a market cap (based on the common shares only) of $36.5 million. PASS!
