Cannasys Inc (OTCMKTS:MJTK) is a penny stock that’s clearly begun to spur some interest among players in the marketplace as shares bounce up off recent lows, powering out of sub-penny status. The action comes amid a cannabis-related move of aggressive proportions that is highly reminiscent of the action from early 2014. This time around, the broad sector catalyst is the footprint expansion that seems likely to result from as many as 9 US states stepping up their legal markets for the plant.
Traders will note a bit more than 560% added to share values of the company over the past week of action, a bounce that has taken root amid largely bearish action over the larger time frame. This is emblematic of the stock. MJTK has evidenced sudden upward volatility on many prior occasions. Furthermore, the stock has witnessed a pop in interest, as transaction volume levels have recently pushed higher, exceeding 370% above the average volume levels in play in this stock over the longer term as the stock blasts above the penny mark.
Cannasys Inc (OTCMKTS:MJTK) frames itself as a company that CannaSys, Inc. provides technology services for the cannabis industry. The company offers BumpUp Rewards, a membership rewards loyalty program designed for social media ties and an electronic solution for providing gifts, points, and discounts to friends and family; and CannaLIMS, a laboratory management information system product focuses on the cannabis marketplace. It has a strategic relationship with MHB, Inc., which provides a lifestyle branding agency services.
The company products serve medical and recreational growers, dispensers, and customers. CannaSys, Inc. is headquartered in Denver, Colorado.
The Company’s PR self-representation reads “We provide marketing technology services in the ancillary space of the cannabis industry. We do not produce, sell, or handle in any manner cannabis products. As the current cannabis industry grows and gains momentum around the country, technology needs for the industry have been largely under-served. Our focus on this niche element of the industry creates many efficient and profitable tools for both industry owners and consumers.”
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We got a very comprehensive look behind the curtain at MJTK in August, when the company’s CEO, Michael A. Tew, penned a letter to stockholders:
“During the past several weeks, we have worked to recapitalize our company to meet our obligations to the holders of our convertible debt as more fully described in our Schedule 14C Preliminary Information Statement that was filed yesterday with the Securities and Exchange Commission . At the same time, we have continued to build the opportunity portfolio for participants in the ancillary services sector of the cannabis industry.
As we completed the acquisition of Citizen Toke discussed below and sought funding to launch our integrated cannabis-industry service suite, we became limited by the fact that we had no authorized shares that were not outstanding or committed for issuance. Unfortunately, this limitation precluded us from timely executing on our business plan. However, we believe we now have put in motion the appropriate resources and capital strategy to effectuate our new product launches and growth opportunities.”
We also got some exciting information on the Company’s move to take over “Citizen Toke”, a unique text-message-based deals platform focused on user acquisition and customer engagement.
Under the terms of a master services agreement with Citizen Toke’s previous owner, “we have committed $100,000 in additional cash to invest in business development and software improvements to deliver new and more advanced versions of Citizen Toke’s software platform. We have secured several new partners to launch the Citizen Toke platform in Colorado and another exciting partner to launch in California, as we will announce in the coming weeks as those collaborative arrangements are formalized. We are very encouraged by initial feedback from customers, retailers, and branded products companies. This has led us to concentrate our focus on getting Citizen Toke into the market immediately.”
Additionally, Ben Tyson, a lead developer of Citizen Toke, became an advisor to CannaSys. Mr. Tyson has over a decade of software development and business development expertise, and he and his team bring a lot of contemporary capability to the table as MJTK execs focus on next-generation growth opportunities.
MJTK has stepped into the cannabis spotlight and we will watch it closely from here and report any updates out of headquarters. Currently trading at a market capitalization of $925K, MJTK has minimal cash on the books, along with total assets greater than $1.3M, which is balanced by an appreciable load ($588.31k) of total accumulated debt. MJTK is making real money, with trailing revs already coming in at $149.73k, a total that comes with some strong topline growth, with quarterly y/y revs increasing at 22%. There are some timing issues as notes come due, but this is clearly another exciting story in the micro-cap space, and tough one to fade at present given the almost surreal upside potential for expansion as legislative scope widens for the cannabis patch. For continuing coverage on $MJTK and our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!