Green Cures & Botanical Distribution Inc (OTCMKTS:GRCU) is a micro-stock that’s been boosted along with the rest of the cannabis patch by the unprecedented legalization wave now powering the space forward. Tuesday’s vote was a huge success for the long-term viability of the marijuana market segment. However, the aftermath will be a time of vulnerability as early event-based bets will be cashed in now that another new catalyst for the space is probably a ways out in the future.
For GRCU, the cap table was a target of proximal value in step with “the news” of the vote, as the company took action to announce a major lightening of the outstanding common share pool via a 300 mln share reduction. The stock comes into the announcement faring well, with recent action showing about 56% piled on for shareholders during the trailing month. Volume has been growing – the stock has registered increased average transaction volume recently of a bit over 400% over the long run average. That is particularly important given the tightening up of share supply.
Green Cures & Botanical Distribution Inc (OTCMKTS:GRCU) trumpets itself as a company that operates various services and products in the medical marijuana and botanical industry. It focuses on the production, distribution, and management of cannabis-derived products.
The company’s products comprise nutritional supplements, vitamins, minerals, herbs/botanicals, sports nutrition, and specialty products. It also provides online community portals that supply public with information and resources regarding the benefits of cannabis-derived products.
Green Cures & Botanical Distribution Inc. is based in Winnetka, California.
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According to their press materials, “Green Cures & Botanical Distribution, Inc. is a revenue-generating company that wholesales and retails hemp-infused nutritional, botanical, sports, and body care products. The company is currently Web-based and focuses on online retailing. Green Cures & Botanical Distribution, Inc. operates a diverse portfolio of products and services within the botanical and cannabis industry, as permitted by law. From concept to production and distribution, Green Cures & Botanical Distribution, Inc. is continuously creating and introducing products that promote a healthy life style.”
In a time of great “sell-the-news” vulnerability for all marijuana-related stocks, the company’s decision to reduce outstanding shares was likely not timed this way by accident.
In short, the company announced the return of 300,000,000 (Three-Hundred Million) shares back to treasury.
“This decision was an easy one to make as InStep Holdings LLC, who is the controlling entity, felt it was in the best interest of the shareholders as well as the company to return the majority of their common holding. The goal is to keep a low and respectable share structure, and the best way of doing that is to maintain a low Issued & Outstanding, which GRCU has achieved today. 300,000,000 shares represented nearly 50% of the shares previously outstanding. By returning the shares to treasury, it creates only positive effects on the current shareholders and the stability of the company.”
Currently, the share structure is 800,000,000 (Eight-Hundred Million) Authorized and 338,716,015 (Three Hundred Thirty-Eight Million Seven Hundred Sixteen Thousand Fifteen) Issued & Outstanding. Plans to make adjustments to the Preferred stock will also be adjusted.
The shares have already been re-designated. These decisions are about returning the unnecessary and excessive. GRCU Management will make the announcements on the Preferred Stock once those items have been completed with the information.
Joe Tragesser, Green Cures & Botanical Distribution’s CEO stated, “I’m pleased to announce the Board’s decision today to increase our Shareholder value. We have reduced our outstanding almost in half. Our strong performance, continuous product development, and our dedication to positive revenue growth, enabled the Board’s decision. This decision reinforces our ongoing commitment to return value to our Shareholders.” Tragesser added, “We believe we are well-positioned to continue this momentum of improving operating costs and productivity. We have aligned ourselves with some really amazing people through our joint ventures and they are with us for the long-haul. We have already taken significant steps to improve our overall performance, and creating additional shareholder value only aids in proving our intent.”
At this time, carrying a capital value in the market of $18.7M, GRCU has an extremely small store of cash on the books, in a pool of total assets of $85K, which compares with an appreciable load ($3.10M) of total accumulated debt. That difficult balance sheet is partially mollified by trailing revs coming in at $1.24M. However, it isn’t pretty.
With the vote in the rear-view window, macro catalysts are no longer going to be the name of the game in this space and we will need to see something plausible and aggressive out of the company to get excited here. We will update the story again soon as events dictate. For continuing coverage on shares of $GRCU stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!