American Green Inc (OTCMKTS:ERBB) is rolling out a brand new strategy for its spot in the marijuana industry. Investor enthusiasm continues to build around the latest “Green Rush” momentum surge, it’s taking just about every marijuana stock along for the ride, including American Green Inc (OTCMKTS:ERBB).
Back in 2009, American Green was the first-ever medical marijuana stock to go public; flash forward seven years later, and the company is badly looking for a new focus and direction to stand out from all the other marijuana stocks in a now crowded field.
American Green Inc (OTCMKTS:ERBB) shareholders have been looking for some positive news out of ERBB headquarters in AZ – and soon. In September, investors saw a small sign of change, with American Green replacing its CEO John Miller with its Executive Chairman, David Gwyther, as a new interim CEO. That’s meant to give the company some more time to figure out a real strategy.
The company made its name with its ZaZZZ machines for automated, age-verifying dispensing of cannabis-based products. The ideas was that these ZaZZZ machines would be a unique automated vending solution that would help medical marijuana dispensaries and other regulated cannabis establishments increase their incremental revenue. Stick a ZaZZZ machine in the corner, and it was possible for visitors at these establishments to make fully unattended marijuana purchases.
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But, as a revenue producer, that strategy only goes so far. Now American Green wants to reinvent itself as a “seed-to-sale innovator” with a full range of cultivation, manufacturing, extraction, retail and community outreach activities.
The centerpiece of that strategy, apparently, is to move forward with a Phoenix-area cultivation center. The company refers to this as its “fast track focus,” with its secondary focus on medical dispensary plans.
The company is obviously staking its fortunes on the upcoming Nov. 8 marijuana ballot initiative in Arizona. If it passes, American Green might be able to fast track its cultivation plans within the state. From there, it could expand its cultivation plans into other Western U.S. states. After all, on Nov. 8, there will be 9 states attempting to legalize marijuana for recreation or medicinal use, including Nevada and California. If California legalizes marijuana via Prop 64, the size of the legal marijuana industry in the U.S. would triple overnight.
To fully leverage its role within the legalized marijuana industry, American Green does have some notable assets to deploy. For one, it has those ZaZZZ dispensing machines. It also controls a range of media properties, including The Urban Cannabist, American GreenZine and AmericanGreen.com. It also sells clothing and accessories under the “American Green” brand. Also, somewhat oddly, the company distributes a tea product known as OG Tea.
As part of its forward-looking medical dispensary plans, American Green has been talking up the prospects for something it’s calling “Project 21” – an advanced, automated dispensary for use by adult customers only. The project might make use of advanced biometric features to make sure only approved users are getting products.
In an effort to rekindle investor momentum around the stock, American Green announced a new American Green smartphone app. In August 2016, the company was looking for 1,000 beta testers for the app. At some point, those beta testers might be converted into potential paying customers.
So, obviously, there are a lot of moving pieces at American Green. The company is trying to remain relevant by moving into commercial cultivation of marijuana, rather than just branding and licensing retail products. And it recently had a management shakeup at the very top, a clear sign that the company is really ready to move forward with a new strategy.
American Green Inc (OTCMKTS:ERBB) shares are trading about as close to zero as you can get: $0.0015. Over a 52-week period, they haven’t been able to crack the $0.01 market. Yet, against all odds, the company still has a market cap of $10M.
If all the pieces fall into place, American Green could be ready to ride the momentum wave around the latest Green Rush and profit from the enormous expansion of the legal marijuana industry. We are watching this story close and will update soon. For more information on American Green (OTCMKTS:ERBB) and other fast-moving penny stocks, please subscribe to OracleDispatch.com