Leafbuyer Technologies Inc (OTCMKTS:LBUY) shares exploded higher last week, continuing a recent spate of momentum that has its roots in mid-December. Of the cannabis-related plays that ripped into year-end and then smacked into a wall known as Jeff Sessions, LBUY has managed to recapture its momentum better than most and therefore deserves a look just on the basis of signals from the trading tape.
The strength may be in part attributable to the company’s very recent announcement that it has been approved and upgraded from the Pink Open Market to the OTCQB Venture Market. According to the release, “OTCQB is the market of choice for early-stage and developing companies. Companies who trade on the OTCQB are required to remain current in their reporting and undergo an annual verification and management certification process. Companies must meet $0.01 bid test and may not be in bankruptcy. These standards provide improved investor confidence through verified information, as well as greater information availability and transparent prices for investors with Real Time Level 2 quotes.”
Leafbuyer Technologies Inc (OTCMKTS:LBUY) trumpets itself as a technology-based cannabis marketing company based in Greenwood Village, CO. The company’s website, leafbuyer.com is the most comprehensive online source for cannabis deals and specials,
LBUY connects consumers with dispensaries. Leafbuyer works alongside businesses to showcase their unique products and build a network of loyal patrons. Leafbuyer’s national network of cannabis deals and information reaches millions of consumers monthly.
LBUY is the official cannabis deals platform of thecannabist.co (owned by the Denver Post) and westword.com. The company also operates one of the largest cannabis-based employment boards in the industry and has partnered with large cannabis content sites that are included in their distribution network.
According to company materials, “The most comprehensive online source for cannabis deals and specials, Leafbuyer.com connects consumers with dispensaries. Leafbuyer works alongside businesses to showcase their unique products and build a network of loyal patrons. Leafbuyer’s national network of cannabis deals and information reaches millions of consumers monthly. Leafbuyer is the official marijuana deals platform of thecannabist.co (owned by the Denver Post) and westword.com.”
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The company had also recently announced that it “is strategically positioned for major expansion into the California Recreational cannabis market in 2018.”
According to that release, the company has lined up a strategic path to take advantage of the passage of Proposition 64, effective January 1, 2018, whereby California residents no longer require doctor’s approval to buy cannabis.
“Kurt Rossner, CEO of Leafbuyer Technologies Inc., stated, “Since the foundation of Leafbuyer, we have set our sights on expanding our business, offerings and sales force. We have had ample time to ramp up our presence in California and early January we will be fully operational in the largest, global, cannabis market. Having extensive experience in the Colorado market, we look forward to building a thriving business in the California market which, is anticipated to be 5 to 7 times the size of Colorado’s established market. We look forward to expanding across California and building our business in additional markets in the U.S. and Canada in 2018 and beyond.”
We’ve witnessed just under 180% piled on for shareholders of the stock during the trailing month. The situation may be worth watching. LBUY is a stock with a past that has featured a litany of sudden rips to the upside. Moreover, the company has seen interest climb, with an increase in recent trading volume of nearly 200% over the long run average.
This should not be overlooked due to the relatively small float size in the stock (about 15M shares). It’s something the veterans know to key on: a restricted trading float and a jump in trading volume can crimp supply and push share prices higher.
Earning a current market cap value of $106.2M, LBUY has a chunk ($286K) of cash on the books, which stands against about $200K in total current liabilities. One should also note that debt has been growing over recent quarters. LBUY is pulling in trailing 12-month revenues of $463K. However, the company is seeing recent leveling out on the top-line on a sequential quarterly basis, with revenues flat as of its latest reporting period. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $LBUY 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 $LBUY, either long or short, and we have not been compensated for this article.