The narrative surrounding Colorado-based Leafbuyer Technologies Inc (OTCMKTS:LBUY) has been evolving somewhat dramatically of late, with the company moving into app and blockchain services for the cannabis patch. To help drive this transformation even further, the company recently announced a non-binding letter of intent to acquire California-based Greenlight Technologies. Shares have been ripping in response, more than doubling in the past few days.
According to the release, “Greenlight provides cannabis consumers real-time mobile ordering and loyalty rewards through a native application that integrates with the local dispensary’s point of sale system. Once the acquisition is complete, Leafbuyer’s customer base in California will more than double. The company expects higher sales in the California market due to the opportunity for cross-selling of the complementary platforms. The company projects that the acquisition will be accretive to earnings within six months.”
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 one of 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.
Leafbuyers national network of cannabis deals and information reaches millions of consumers monthly. Leafbuyer 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, “Leafbuyer.com is one of the most comprehensive online sources for cannabis deals and information. 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 every month. Leafbuyer is the official cannabis deals platform of Dope Media, LA Weekly, and Voice Media Group.”
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As noted above, LBUY just recently announced a non-binding letter of intent to acquire California-based Greenlight Technologies. In all, traders will note approaching 200% tacked on to share pricing for the company in the past week, but this action is running counter to the larger trend in the name.
Moreover, the listing has registered increased average transaction volume recently, with the past month seeing approaching 610% above the average volume levels in play in this stock over the longer term. This should not be overlooked given the stock’s tight trading float of under 18M shares. One is wise to respect the dynamic this may create — a mechanically driven price squeeze can result from this type of mix of small float and ramping attention from traders.
“We believe Greenlight’s technology and team will be a tremendous addition to Leafbuyer. Their presence in California will allow us to serve that rapidly growing market and tap into a significant new revenue stream. Offering mobile app pre-ordering will allow consumers to skip long lines and enjoy a better overall experience. We believe this service will offer dispensaries a powerful new tool and will allow us to cross-sell the Leafbuyer suite of solutions to a much larger sector of the market,” said Kurt Rossner, Chairman and CEO of Leafbuyer.
Currently trading at a market capitalization of $72.85M, LBUY has a stash ($196K) of cash on the books, which compares with about $1M 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 $1M. In addition, the company is seeing recent top-line growth, with sequential quarterly revenues growing at 9.6%. You can bet we will update this one again as new information comes into view. 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.