General Cannabis Corp (OTCMKTS:CANN) is up 18% since last week. The share price has climbed back above the $2 mark after it fell to $1.25. Ten days ago, CANN announced it was buying GC Finance Arizona. This is probably the source of the company’s rebound after an earnings report showed minimal growth.
Earning a current market cap value of $27.63M, CANN has a store ($408K) of cash on the books with very little liabilities and 19.77M shares outstanding.
General Cannabis Corp (OTCMKTS:CANN) bills itself as a company that provides services to the regulated cannabis industry in the United States. The company engages in the acquisition and leasing of cultivation space and related facilities to licensed marijuana growers and dispensary owners; and provision of security services, including on-site professionals, video surveillance, and cash transport to licensed cannabis cultivators and retail shops.
It also designs, distributes, and sells apparel featuring graphic designs; and offers consulting services to the cannabis industry that comprise obtaining licenses, compliance, cultivation, logistical support, facility design, and building services. In addition, General Cannabis Corporation provides shared office space, networking, and event services; and leases cultivation equipment and facilities.
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This acquisition supports CANN’s goal of acquiring diversified assets and having multiple revenue buckets. According to the press release, DB Arizona produces and distributes medical marijuana infused products in the state of Arizona. The vast majority of DB Arizona’s products to date have been Dixie Brands Inc.’s full line of medical cannabis “Dixie Elixirs and Edibles.”
DB Arizona began production in the fourth quarter of 2016. During the first quarter of 2017, gross revenues for DB Arizona were approximately $194,000. DB Arizona has significant excess production capacity at its 14,000 square foot state of the art commercial kitchen and infused products manufacturing facility.
“We are excited to announce the purchase of GC Finance Arizona, LLC. We look forward to working with our partners to introduce and produce the highest quality infused products for the medical marijuana industry in the state of Arizona.” said Michael Feinsod. “Closing on this milestone expands our public company platform and further diversifies our revenue stream, which will create significant shareholder value.”
Here is another quote from the CEO that I found telling about what the company is trying to do: “General Cannabis Corporation is the comprehensive resource for the highest quality service providers available to the regulated Cannabis Industry. We are a trusted partner to the cultivation, production and retail side of the cannabis business. We do this through a combination of strong operating divisions such as real estate, consulting, security, financing and the distribution of important infrastructure products to grow facilities and dispensaries. As a synergistic holding company, our subsidiaries are able to leverage the strengths of each other, as well as a larger balance sheet, to succeed.”
General Cannabis Corp (OTCMKTS:CANN) has been up and down over the last 14 days. If you are playing cannabis stocks right now, then this kind of turbulence is nothing new to you. CANN seems to be throwing things to the wall and seeing what sticks. This is probably as overstatement, but the company has seen top-line growth and has potential in its arsenal of cannabis sector plays. Bottom line, we think this is a company worth watching. For continuing coverage on shares of $CANN stock, as well as our other breakout picks, sign up for our free newsletter today and get our next hot stock pick!