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Saturday, November 28, 2020

Cannabis Strategic Ventures (OTCMKTS:NUGS) Demonstrates Conviction with Friendly Restructuring

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One of the more interesting plays to recently grab some spotlight on the OTC is Cannabis Strategic Ventures (OTCMKTS:NUGS). The story is interesting as basically a publicly traded private equity venture operation with a focus on the cannabis space. To help drive more enthusiasm among investors, the company just announced a major common share restructuring highlighted by the cancellation of 75.6 million shares, including 20 million from Chief Executive Officer, Simon Yu.

According to the release, “The share cancellations are designed to increase shareholder value for all shareholders and will allow Company managers, consultants, minority shareholders, and other key Cannabis Strategic Ventures stakeholders to increase corporate flexibility relative to future brand-oriented strategic acquisitions and partnerships.”

Cannabis Strategic Ventures (OTCMKTS:NUGS) is a play on overall growth in the cannabis space. This is effectively a vehicle for strategic investments and acquisitions.

The company is based in Los Angeles and is focused on supporting entrepreneurial growth within the fast-growing legal cannabis sector. The Company, recently completed a name and symbol change from Cascade Energy, Inc. Cannabis Strategic Ventures offers outsourced personnel solutions that are tailor-made to match the growth dynamics of cannabis cultivators, manufacturers, dispensaries, and other cannabis marketplace participants.

The company focuses on the fast-growing medical and legal recreational cannabis sectors.

The company will provide temporary, permanent, and long-term staffing solutions, employment and human resources consulting and Professional Employment Organization services to the legal Cannabis space.

According to company materials, “Cannabis Strategic Ventures is based in Los Angeles and is focused on supporting entrepreneurial growth within the fast-growing legal cannabis sector. The Company recently completed a name and symbol change from Cascade Energy, Inc. Cannabis Strategic Ventures offers outsourced personnel solutions that are tailor-made to match the growth dynamics of cannabis cultivators, manufacturers, dispensaries, and other cannabis marketplace participants. Cannabis Strategic Ventures is publicly traded on the U.S. Over the Counter Market with the stock symbol NUGS.”

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As noted above, the company blatantly appealed to investor enthusiasm on Wednesday, announcing a shareholder-friendly restructuring to juice the shares. That’s even more helpful given the tight float in play.

The important point to highlight here is this: the stock has recently powered higher, and a company with nothing going on would be creating shares and selling them at the higher price, banking the free money. Only a company that genuinely believed it had a bigger story in front of it would be canceling shares following that kind of rally.

In all, recent action has seen a bit more than 160% tacked on to share pricing for the listing in the past month. Furthermore, the name has registered increased average transaction volume recently, with the past month seeing a bit less than 610% above the average volume levels in play in this stock over the longer term. This should not be overlooked with the stock trading on a float that is very limited at just 3.8 million shares.

“The share cancellations increase value for all shareholders and signals to minority shareholders on the management team’s interest in building long-term value for all,” commented Mr. Simon Yu, CEO, Cannabis Strategic Ventures. “The future of Cannabis Strategic Ventures is all about acquiring and partnering with the best brands in the fast-growing cannabis marketplace. The streamlined share structure will continue to make our Company an attractive partner as we work toward signing other similar brands and distribution partnerships.”

Earning a current market cap value of $1.59B, NUGS has a store ($165K) of cash on the books, which is balanced by about $213K in total current liabilities. One should also note that debt has been growing over recent quarters. NUGS is pulling in trailing 12-month revenues of $565K. In addition, the company is seeing recent top-line growth, with sequential quarterly revenues growing at 50.5%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $NUGS 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 $NUGS, either long or short, and we have not been compensated for this article.

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