American Cannabis Company Inc (OTCMKTS:AMMJ) shares have been on the mend since early June, rising as much as about 100% during the intervening period. AMMJ just announced it has secured its third client in the state of Arkansas. According to the release, this client has initially retained ACC to provide pre-licensing solutions for their project. AMMJ will work with the client on robust financial pro-forma modeling, the creation of a custom business plan, facility conceptual design work, and with the completion of the state application. AMMJ expects to leverage this contract to secure additional revenues through long-term consulting agreements and potential future sales of ancillary products.
Terry Buffalo, CEO of AMMJ commented: “We are very pleased to announce that we have secured our third client in the state of Arkansas. It takes a knowledgeable project management team and motivated client to produce and organize pre-licensing and application materials, and ACC feels that the logistics are in place to have our client’s applications thoroughly completed and ready for submission. This up-and-coming legal state cannabis market is already slated to be competitive, but we feel that our clients will be prepared to do what it takes to not only secure licensure but also flourish in the space.”
American Cannabis Company Inc (OTCMKTS:AMMJ) promulgates itself as a company that provides solutions for businesses operating in the cannabis industry in the United States and Canada.
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AMMJ provides advisory and consulting services, including commercial cannabis business planning services, cannabis business license applications, cultivation build-out consulting, cannabis regulatory compliance, compliance audit services, cannabis business growth strategies, and cannabis business monitoring services.
The company also sells products and equipment used in the cultivation, processing, transportation, or retail sale of cannabis. Its product offerings include The Satchel, a pouch-like case designed as a child-proof exit package solution for the regulated cannabis industry; SoHum Living Soil, a just-add-water soil; High Density Racking System, which ensures the proper use of space; The Cultivation Cube, a self-contained and scalable cultivation system; and other products for cultivation operations, medicinal and recreational cannabis dispensary operations, and infused-products.
According to company materials, “American Cannabis Company, Inc. offers end-to-end solutions to existing and aspiring participants in the cannabis industry. We utilize our industry expertise to provide business planning and market assessment services, assist state licensing procurement, create business infrastructure and operational best practices. American Cannabis Company also developed and owns a portfolio of branded products including: The Satchel, SoHum Living Soils, The Cultivation Cube and The High Density Cultivation System. We also design and provide other industry specific custom product solutions. The building and development of our brands and product suite is based on our Geoponics Philosophy, “the art and science of agriculture in soil.”
As noted above, AMMJ shares have been moving higher, recently spurred on by news that the company’s expansion in Arkansas has been rolling along. This is the third client for the company in that state, as they continue to build out the basis for accelerating growth in the consulting corner of the cannabis patch.
Traders will note 36% piled on for shareholders of AMMJ during the trailing month, a bounce that has taken root amid largely bearish action over the larger time frame. That said, AMMJ has a history of dramatic rallies. Furthermore, the company has witnessed a pop in interest, as transaction volume levels have recently pushed 100% over what the stock has registered over the longer term.
This is particularly important with the stock trading on a float that is relatively small at just 25.6M shares. One is wise to respect the dynamic this may create — a mechanically driven price squeeze can result from this type of mix of small float and ramping attention from traders.
Currently trading at a market capitalization of $36M, AMMJ has a chunk ($1.7M) of cash on the books, which is balanced by virtually no total current liabilities. AMMJ is pulling in trailing 12-month revenues of $1.6M. In addition, the company is seeing major top line growth, with y/y quarterly revenues growing at 14.2%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. For continuing coverage on shares of $AMMJ stock, as well as our other hot 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.