One stock that just changed trading tone in a remarkable manner on Wednesday was General Cannabis Corp (OTCMKTS:CANN). The stock broke above both its 50-day and 200-day simple moving averages on a 30% rip on a swift jump in volume. But the move was not without cause.
Specifically, the company was in fact the recipient of good tidings from OTCmarkets.com, when that latter organization just announced that “General Cannabis Corp. (OTCQX: CANN), a service provider to the regulated cannabis industry, begins trading today on the OTCQX Best Market under the symbol CANN. General Cannabis upgraded to OTCQX from the OTCQB® Venture Market. U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the company on www.otcmarkets.com.”
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.
Next Big Crop joined General Cannabis as a subsidiary in 2015 to offer consulting services for the cultivation, processing and sale of cannabis. Another division, Chiefton Supply Co., designs and manufactures high-quality, customized apparel and clothing for businesses in the cannabis industry, while Chiefton Design creates and develops branding packages for companies. Iron Protection Group is a subsidiary of General Cannabis that provides security services to enterprises within the cannabis industry. On December 21, 2017, General Cannabis signed a two-year contract worth $955,000 to manage a cultivation facility in California, representing the largest single contract the company has ever secured.
Find out when $CANN reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.
We’ve witnessed 15% during the past week in terms of shareholder gains in the company. Furthermore, the listing has seen interest climb, with an increase in recent trading volume of 24% beyond its prior sustained average level. It pays to take note of this fact with a float in play that’s tiny — of 36M shares.
“Congratulations to General Cannabis on upgrading to the OTCQX Best Market,” said Jason Paltrowitz, Executive Vice President of Corporate Services at OTC Markets Group. “We are pleased to see General Cannabis utilize the OTCQB Venture Market to build their company’s visibility and graduate to the OTCQX Best Market, and we look forward to continuing to support the company and its investors in the U.S.”
“While we continue to focus on strengthening and expanding General Cannabis’ business, we believe this upgrade to OTCQX will further enhance our trading liquidity and provide additional opportunities with institutional investors,” commented Michael Feinsod, Executive Chairman of the Board of Directors.
Currently trading at a market capitalization of $112M, CANN has a significant war chest ($4.6M) of cash on the books, which compares with virtually no total current liabilities. CANN is pulling in trailing 12-month revenues of $3.7M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 31.1%. 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 $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.