American Cannabis Company Inc (OTCMKTS:AMMJ) is finally giving shareholders some much needed relief. The last thirty days has seen the bounce that investors have been waiting for, closing at 56 cents on July 17th having been as low as 35 cents on June 13th, it seems like that was the bottom for the time being. The catalyst for this bullish reversal was the announcement that American Cannabis Company (OTCMKTS:AMMJ) has secured a flurry of new clients. On June 14th the company announced that it had secured its first client in the state of North Dakota, this is a major step forward for ACC and opens up further future opportunities in the state and region. The objective is to win a licence for the client to enable legal operation of a vertically integrated cannabis business.
AMMJ will be providing complete end to end solutions for the client including operational planning activities, conceptual design work, application completion, deployment of operations and ongoing remote management. Furthermore, ACC expects to develop other revenue streams on the back of this deal via future consulting agreements and ancillary product sales.
Terry Buffalo, CEO of American Cannabis Company Inc (OTCMKTS:AMMJ), commented: “We are excited to have secured our first client in the state of North Dakota. As we see many business opportunities within the regulated cannabis space nationally, we cannot be more happy to have the ability to leave our footprint in the Midwest.”
The following day, ACC secured their second client in the state of Ohio, Buffalo believes that despite being a competitive environment the clients they are taking on are well prepared and sufficiently organized to obtain the required license and profit substantially from the state program.
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It didn’t stop there for AMMJ, on June 27th they secured yet another client, Bud Fox Enterprises LLC and Ty Webb Enterprises LLC, in the state of Colorado. The company will provide end to end solutions for this multi location business comprised of state-of-the-art greenhouse cultivation and extraction. ACC selected the vendors and technology to ensure the client was provided with a high end business infrastructure.
Mark Prescott, CEO of Bud Fox Enterprises LLC and Ty Webb Enterprises LLC, commented: “My company is in the process of becoming a next generation cannabis business within the sector, and I thank the ACC team for creating the foundation that will lead to both our success and future growth. ACC is providing us with state-of-the-art cultivation equipment and methodologies that are sure to give way to a consistent, top-tier product. Our cultivation environment will feature a fully outfitted greenhouse that utilizes the full spectrum of the sun, low water usage and ACC’s proprietary SoHum Living Soils. The SoHum Living Soils product will cut our costs down tremendously in the cultivation phases, as this fully amended blend provides a plant with the appropriate amount of nutrients for its entire life cycle. This eliminates the need to purchase any nutrients or additives which will ultimately lower our total cost of production per harvest. This consulting firm is unlike any other, and once we engaged with ACC it was very easy to see what sets them apart from the rest of their competition.”
The implementation of SoHum Living Soils is a feather in the cap for AMMJ but the recognition of their proprietary product extends much further than that. SoHum Living Soils, a “just add water” growing medium that contains 100% natural ingredients and provides the cannabis plant a full buffet of macro/micro nutrients to better achieve genetic potential as well as an optimal cannabinoid profile, has won the 2017 High Times STASH award for “Best Potting Mix.” This is a high profile award that will help ACC further establish its brand in the cannabis industry.
Looking at the company’s latest financials for Q1 of 2017, the balance sheet looks solid. ACC reported $1,663,208 in cash, an increase of 120% from Q1 2016. Total assets were up by 93% from Q1 2016 to $1,898,735, total liabilities were $663,113, which was an increase of 100% and total revenues were up 54% on Q1 2016 to $617,15. They reported a net loss of $206,000 compared to just $13,557 the year before.
After a dismal start to this year, it seems like the rays of sunlight are starting to shine through for American Cannabis Company (OTCMKTS:AMMJ) with new clients being onboarded and the financials looking sound. This is definitely one we will keep an eye on and update as events unfold. For continuing coverage on shares of $AMMJ stock, as well as our other breakout stock picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: we hold no position in $AMMJ, either long or short, and we have not been compensated for this article.