General Cannabis Corp (OTCMKTS:CANN) shares have been back in gear and out ahead of the cannabis space during the sector’s big run to close out 2017. The company has strong exposure to several growth markets, including California, and trades on a tight float, which certainly doesn’t hurt in terms of the momentum game.
The latest from the company comes in the form of its announcement to close out the week that it has executed one of its strategic goals of strengthening the balance sheet through a significant debt reduction. According to the release, the effective date is January 3, 2018, at which time “General Cannabis paid off the full balance of its 12% Notes, $1,621,250, which were due in September 2018.”
General Cannabis Corp (OTCMKTS:CANN) bills itself as a company that provides services to the regulated cannabis industry in the United States. The company engages in the acquisition and leasing of cultivation space and related facilities to licensed marijuana growers and dispensary owners; and provision of security services, including on-site professionals, video surveillance, and cash transport to licensed cannabis cultivators and retail shops.
CANN also designs, distributes, and sells apparel featuring graphic designs; and offers consulting services to the cannabis industry that comprise obtaining licenses, compliance, cultivation, logistical support, facility design, and building services. In addition, General Cannabis Corporation provides shared office space, networking, and event services; and leases cultivation equipment and facilities.
According to company materials, “General Cannabis Corporation is the comprehensive resource for the highest quality service providers available to the regulated Cannabis Industry. We are a trusted partner to the cultivation, production and retail side of the cannabis business. We do this through a combination of strong operating divisions such as real estate, consulting, security, financing and the distribution of important infrastructure products to grow facilities and dispensaries. As a synergistic holding company, our subsidiaries are able to leverage the strengths of each other, as well as a larger balance sheet, to succeed.
Incorporated in 1987, General Cannabis Corp is a leader in the cannabis industry based in Denver, Colorado which prides itself in being a comprehensive resource for the highest quality service providers available to the regulated Cannabis Industry.
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General Cannabis CEO Robert Frichtel said, “We believe this transaction provides an opportunity to increase shareholder value and is immediately accretive to earnings per share. Our businesses continue to grow with strong cash flow characteristics, and we believe that we can meaningfully increase shareholder return by reducing debt. We remain committed to allocating capital in a manner that appropriately balances our growth objectives with our focus on providing our shareholders with a strong opportunity for return.”
Michael Feinsod, Chairman of General Cannabis added “With the recent completion of an equity offering and sale of certain real estate assets, it is an opportune time to clean up our balance sheet and appropriately pay down debt. We remain committed to aggressive expansion into new regulated cannabis markets. We continue to explore all strategic methods to maximize shareholder value.”
We’ve witnessed more than 180% added to share values of the name over the past month of action. Market participants may want to pay attention to this stock. CANN has evidenced sudden upward volatility on many prior occasions. Furthermore, the company has witnessed a pop in interest, as transaction volume levels have recently pushed just shy of 590% over the long run average.
It pays to take note of this fact with the stock trading on a float that is relatively small at just 14.7M shares. One is wise to respect the dynamic this may create — a restricted trading float and a jump in trading volume can crimp supply and push share prices higher.
Currently trading at a market capitalization of $223.2M, CANN has a stash ($253K) of cash on the books, which compares with about $2.7M in total current liabilities. One should also note that debt has been growing over recent quarters. CANN is pulling in trailing 12-month revenues of $3.3M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 20.9%. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $CANN 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 $CANN, either long or short, and we have not been compensated for this article.