American Cannabis Company Inc (OTCMKTS:AMMJ) is an interesting chart right now. AMMJ pivoted off the early June lows in strong fashion, ripping as much as 300% higher into the middle of August. AMMJ continues to paint a strong picture of momentum as a b2b play in the cannabis patch. In its latest release, AMMJ just hit the wires with its second quarter 2017 financial results for the three-month period ended June 30, 2017 as well as a general update on operations and outlook. It was a revealing peek under the hood.
Chief Financial Officer (CFO), Michael Tuohey, CPA, commented, “Over the course of the last 12 months the financial strength of the Company has continued to improve. We feel this positions the Company to have the flexibility to expand and take advantage of opportunities within the industry. Management is committed to improve its position in the industry and shareholder value.”
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.
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.
AMMJ 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.”
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As noted above, AMMJ has been mostly red hot since June, with some big gains on the board. The company just came out with an update and some financial data. We found these highlights very enlightening overall.
The Chief Executive Officer (CEO) of American Cannabis Company, Terry Buffalo, commented on the second quarter 2017 results, “We are pleased with the rapid growth we have experienced this year and that we are delivering positive value for our shareholders. The second quarter financials are a dramatic improvement from our first quarter results. Since we filed the Form 10-Q [Statement] with our second quarter results, the new challenge for us will be to maintain our position as an industry leader as we continue to expand our business internationally and to increase brand awareness.”
In addition, the company posted revenues from consulting services for the second quarter at $841,762 compared with $211,863 for the same period in 2016, which represents a 297% increase, or $629,899, over 12 months. That’s probably the main reason we have seen this stock on the move. According to the release, the increase was primarily attributable to the Company having more consulting sales, new consulting clients, and recurring client revenue from ongoing engagements.
Now commanding a market cap of $47.83M, AMMJ has a store ($1.7M) of cash on the books, which must be weighed relative to virtually no total current liabilities. AMMJ is pulling in trailing 12-month revenues of $2.1M. In addition, the company is seeing major top line growth, with y/y quarterly revenues growing at 114.8%. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $AMMJ stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: We hold no position in $AMMJ, either long or short, and we have not been compensated for this article.