Update: Grem USA - Just Grem and Bear It

Hats off to Grem USA OTCBB: GRUS).  No, the Company has not turned the corner.  And no, the Company has not begun to reap profits from the promised manufacture and sale of a proprietary line of guitars. 

Grem’s singular accomplishment?  The Company has not changed its name in two years – a notable feat, considering the Company’s eclectic history.  Grem, which started its corporate life as Last Clothing Company, has been known, successively, as MIVI Biomedical Technologies (for roughly five months); Last Clothing Company, again (three months); Premier Axium ASP (sixteen months); Core Solutions (ten months); Sunshine Ventures (two months); Christine’s Precious Petals (2 months); Global Business Markets (about 18 months).

So far, however, the guitar business has proved no more profitable than the Company’s earlier ventures into an outsourcing business, "smoothies" bars, real estate operations and some sort of floral venture.  See, Update: Grem USA - Just Strummin' Along. 

And, unfortunately, longevity has not translated into profitability.  As of September 30, 2006, (the most recent period for which financial details are available) Grem had an accumulated deficit of more than $34.6 million, and its current liabilities exceeded its current assets by over $1 million.  Grem incurred losses of $1,080,110 for the first nine months of 2006.

Grem has something else in common with its predecessors.  The Company recently announced plans for a reverse stock-split – the fifth one since 2002.  The Company implemented a 1 for 10,000 share reverse stock split in July 2002, a 1 for 25,000 share reverse split in October 2002, another 1 for 25,000 share reverse-split in May 2003, and a 1 for 200 reverse stock-split in November 2004.

Most recently, on February 27, 2007, Grem effected a 1 for 4 reverse stock-split.  The Company has been using shares to compensate its sole director and officer, Edward Miers, and to meet other obligations sp the latest reverse-split seemed inevitable.  Grem was running out of stock – having handed out virtually all of the 5 billion common shares authorized by the Company’s Certificate of Incorporation.  Since the Company remains authorized to issue 5 billion shares – and there are now only 1.2 billion or so shares outstanding, Grem can presumably continue to dole out stock.

If only it were this easy to produce guitars.

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